Beware the smartphone security threat — new report claims most banking scam attempts now take place on mobile devices | Daily Reports Online
- Scammers are increasingly targetting mobile users with banking scams
- Attempts at banking scams increased by 35% over the past 12 months
- Employment scams are also growing, tempting victims with promises of high wages and job satisfaction – for a price
New research has claimed banking scam fraudsters are increasingly focusing on mobile devices, with a 35% increase in such scams over the last 12 months. Rather than attempt to con victims via landline or email, banking scams are now almost wholly aiming at mobile devices – from where victims can easily transfer money.
The report from BioCatch has highlighted a range scams that are growing in prevalence, including romance scams and investment scams.
However, while banking scams represent a key challenge, it is purchase scams that are the most common, accounting for 33% of all scam attempts.
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Global fraud
The proliferation of mobile phones around the world and the availability of banking apps is an advantage to scammers, but they use all manner of strategies to part victims with their cash. BioCatch’s research shows that 90% of all scams take place via a mobile phone, with romance scams increasing by 23% on the last year and investment scams the most costly, with an average case value of $6,600.
BioCatch has identified that artificial intelligence techniques are used by both the scammers and the banks.
“Social engineering scams have not suddenly become less prevalent or sophisticated,” noted Director of Global Fraud Intelligence at BioCatch, Thomas Peacock. “If anything, artificial intelligence has lowered the barrier to entry for aspiring scammers, allowing more bad actors to create more convincing scams at a scale we’ve never seen before. In response, many banks have realised behavioural intelligence enables them to recognise signs of manipulation and coercion before an accountholder ever authorises a transaction.”
Theft without the break-in
The risk from banking scams relies on two key factors: the fraudsters’ use of manipulative, persuasive strategies to force an irrational financial-based panic in the victim, and the ease with which money can be moved around via a mobile banking app.
Although mobile banking is hugely convenient for honest citizens, it is also proving to be a boon for the scammers. As BioCatch’s Director of Global Advisory Jonathan Frost says, “Scammers don’t need to break into an account if they can persuade the customer to move the money for them. That is the challenge banks face today with investment and romance scams, where customers are manipulated into making payments they believe are legitimate.”
Different territories have their own rules for helping victims of these scams. In the UK, protection is available. “Reimbursement in the UK protects victims financially after the event, but it does not stop the scam from succeeding. The priority now has to be preventing the payment from reaching the criminal in the first place.”
The challenge is to ensure everyone knows the risks from banking scams.
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