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'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

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TechChanging Face of Security

Apple and Other Phone Makers Probed Over Security Delays

Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
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Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
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May 9, 2016, 2:14 PM ET
Apple Starts iPhone 6 Sales In Germany
BERLIN, GERMANY - SEPTEMBER 19: A shopper ltries out the new Apple iPhone 6 at the Apple Store on the first day of sales of the new phone in Germany on September 19, 2014 in Berlin, Germany. Hundreds of people had waited in a line that went around the block through the night in order to be among the first people to buy the new smartphone, which comes in two versions: the Apple iPhone 6 and the somewhat larger Apple iPhone 6 Plus. (Photo by Sean Gallup/Getty Images)Photograph by Sean Gallup — Getty Images
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When phone makers find a flaw that makes a phone vulnerable to hackers, are they doing enough to inform consumers? Perhaps not. On Monday, two federal agencies announced investigations into how the mobile industry is reacting to such threats.

In a press release, the Federal Trade Commission said it is asking information from Apple (AAPL), Google (GOOG), Microsoft (MSFT) and five other companies about how and when they “patch” software vulnerabilities. The Federal Communications Commission is pursuing a parallel investigation.

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“There have recently been a growing number of vulnerabilities associated with mobile operating systems that threaten the security and integrity of a user’s device,” said the FCC’s version of the release, citing a threat called “Stagefright” that may affect one billion Android devices worldwide.

For consumers, these mobile vulnerabilities pose the same sort of danger as a virus on a home computer. In the worst case, a hacker could steal content from the phone or hack its messaging systems.

To address such risks, mobile companies send out software updates that close the door to potential hacks. In launching the investigations, the agencies appear to be looking at whether the companies are doing so quickly enough. While the existence of a software threat does not necessarily mean hackers have exploited it, the risk escalates the longer the company fails to send out a patch.

The issue is not a new one. In 2013, the ACLU filed a complaint with the Federal Trade Commission, claiming major wireless carriers were committing a deceptive trade practice by failing to warn consumers about vulnerabilities.

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In the event the agencies find the mobile phone companies have acted improperly, they could impose fines or orders that require the companies to change their practices.

The average consumer, meanwhile, must simply hope for the best, and that the companies address the vulnerabilities before hackers do. Consumers can also help themselves by keeping their operating system up to date.

The full list of companies receiving orders from the FTC are Apple, Blackberry, Google, HTC America, LG Electronics USA, Microsoft, Motorola Mobility, and Samsung Electronics America.

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Jeff John Roberts
By Jeff John RobertsEditor, Finance and Crypto
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Jeff John Roberts is the Finance and Crypto editor at Fortune, overseeing coverage of the blockchain and how technology is changing finance.

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