Banking App Fraud On The Rise

A recent report from cyber-security company RSA has highlighted a significant rise in fraud via fake banking apps.

Number of Attacks Has Trebled

The Fraud and Risk Intelligence (FRI) team at RSA have noted a tripling of the number of fraud attacks via fake mobile banking apps in the first six months of this year with rogue mobile app fraud generally up by a staggering 191 per cent.

Fake Mobile Apps Exploit Digital Finance Trust

Not only did the 40,344 fraud attacks represent a 63 per cent rise, but 29 per cent of those attacks were recorded as coming from fake mobile apps. 

In fact, the report identified an 80 per cent rise in the use of financial malware in the first half of this year, highlighting how cyber-criminals are using the transformation of finance to the digital world and the increasing trust of users in financial apps and digital financial transactions as a way in.

Changing

Tech and finance commentators have noted that as companies offer more convenient digitised financial initiatives to customers e.g. open banking, and as this has necessitated customers engaging in more digital touchpoints, it has led to a widening of the potential ‘attack surface’ that criminals can take advantage of.

Could Banks Do More?

An Immuniweb report from August this year noted that a massive 98 per cent of the world’s100 leading financial technology (fintech) startup companies are vulnerable to web and mobile app attacks, and that 97 of the 100 largest banks are also vulnerable to web and mobile attacks which could facilitate a breach of sensitive data.

The Immuniweb report also highlighted mobile financial apps as being a problem area with all mobile apps tested showing at least one ‘medium risk’ security vulnerability, and 97 per cent having at least two medium/high-risk vulnerabilities. The tests also showed that over 50 per cent of mobile app backends have serious SSL/TLS misconfigurations or privacy issues which could be traced to not having robust-enough web server security.

This has led to some speculation that banks and other financial organisations could be doing more to help close potential security loopholes in their apps, thereby offering better protection to customers.

What Does This Mean For Your Business?

Mobile apps offer banks and other financial organisations a way to offer convenience and added value to their customers who want to be able to manage their finances on the go. However, legitimate app security problems, a proliferation of fake/rogue financial apps and a widening of the potential attack plane that this brings to consumers who increasingly trust their finances to mobile digital transactions have increased the attack plane and the risks that businesses and consumers face.

As users of banking and other financial apps, we can help protect ourselves by sticking to some basic security procedures such as not clicking on links in unfamiliar messages or texts (to avoid loading malware), keeping a close eye on our bank transactions, and by being very cautious when downloading apps of any kind. For example, to minimise the risk of falling victim rogue/fake apps, you should check the publisher of an app, check which permissions the app requests when you install it, delete any apps from your phone that you no longer use, and contact your phone's service provider or visit the high street store if you think you’ve downloaded a malicious/suspect app.