Following the discovery of two security exploits within Google Wallet, the Vice President of Google Wallet and Payments, Osama Bedier, released a statement reassuring readers that Google takes "concrete actions" to protect its users. The statement further indicated that, in response to Wallet's security scare, Google has put prepaid card provisioning on hold, at least until a permanent fix is issued (which should happen "soon").
Update 2/14/12: Prepaid card provisioning has been restored:
Yesterday afternoon, we restored the ability to issue new prepaid cards to the Wallet. In addition, we issued a fix that prevents an existing prepaid card from being re-provisioned to another user. While we’re not aware of any abuse of prepaid cards or the Wallet PIN resulting from these recent reports, we took this step as a precaution to ensure the security of our Wallet customers. If you are unable to access your previous prepaid card balance for any reason, please contact our toll-free support for assistance.
The statement goes on to assure customers that, should their phone be lost, or used to make an unauthorized transaction, toll-free assistance is available. Those interested can find the full statement at Google's Commerce blog here. Of course, we'll be on hand with any new details as they emerge.