Today, mobile banking has become a reality in Europe. With smartphone penetration continuing to rise banks have been investing in this channel as well as other mobile payment solutions. But mobile banking brought with it its own kind of criminals who make use of unsecure platforms to steal from mobile phone users.
AVG, an anti-malware provider, has recently released a study reporting that mobiles are becoming crucial targets. The report notes, “Over the past 12 months it appears that targeting mobile phones has been sufficiently lucrative for cybercriminal to make this a key focus of malware development.” They add, “If stealing money is the objective, today’s sophisticated smartphones make the ideal target. Mobile phones are usually tied into billing systems an therefore installing a piece of malware and sending one expensive premium SMS a week in the middle of the night can go unnoticed for a considerable period of time”
But criminals are no longer targeting smartphones through premium SMS services but trying to target their bank accounts directly. Thieves use similar tactics to online banking and introduce malware into the user’s phone when they download another application. The malware infiltrates the smartphone and the user’s bank account and allows the criminal to withdraw large sums of money in a single transaction.
British bank Natwest was recently forced to withdraw its GetCash app following reports of fraud by criminals targeting customers’ mobile phones. It seems other British banks have followed suite and are introducing stricter fraud claim regulations, to make sure their clients are protecting their mobile banking applications. However, banks might need to take responsibility themselves as well as keep their customers informed of the possible risks involved in mobile banking and payments.
