The ability to ‘smartly’ ascertain and adapt to the context of a situation or scenario is known as context awareness. A significant element of context aware systems lies in the use of location based services. Location is an important contextual parameter in context aware computing, and can affect various modes of interaction between user and application. With the increased use of data services in mobile computing today, wireless security is paramount and lacking. However, the use of location parameters is also closely tied in to security issues such as security, privacy and resource usage problems on mobile clients. In this paper, we discuss the relationship between location and security and our design of LOCAS, which is a location aware adaptive security model that scales various ‘profiles’, or grades of security depending on resource levels. In addition, some m-Commerce and scenarios for location-based services involving security and privacy are also discussed.