Last week a number of security flaws were discovered in Google Wallet, with one of the flaws affecting only rooted devices and the other flaw affecting both rooted and non rooted devices.
On the weekend Google posted a response to the reported security flaws, and have taken some steps to limit their impact and they have disabled the ability for prepaid cards on Google Wallet.
Second, we also take concrete actions to help protect our users. For example, to address an issue that could have allowed unauthorized use of an existing prepaid card balance if someone recovered a lost phone without a screen lock, tonight we temporarily disabled provisioning of prepaid cards. We took this step as a precaution until we issue a permanent fix soon.
And just like with any other credit card, you can get support when you need it. We provide toll-free assistance in case you lose your phone or someone manages to make an unauthorized transaction.
You can find out full information on what Google are doing to fix the issues with Google Wallet over at the Google Commerce blog.
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