Know everything about Mobile Banking fraud and how to prevent it

The demonetisation move in India saw a huge spike in the usage of mobile banking. As there was a severe cash crunch in the nation, people had to resort to mobile banking for everyday transactions and bill payments. Even though cash is still the most preferred medium for any transaction, mobile banking has managed to leave its mark in the market, and people depend on it to transfer money, pay utility bills, etc. However, just like every boon has a curse; mobile banking has its flaws too.

So, what is mobile banking fraud?

The risks that are associated with mobile banking are quite similar to the risks associated with Internet Banking. There are several methods to acquire your personal data and bank details from your phone. These are mostly done through third party apps and smishing (similar to phishing, but through text messages). You should treat your mobile device just the way you treat your laptops and computers, as they too are prone to virus. The presence of a virus on your cell phone can lead to duplication, deletion or transferring your vulnerable phone data to other devices.

How to prevent frauds in mobile apps?

The best way to stop your phone from falling prey to such acts is to stay vigilant and take all necessary precautions to avoid a hack. Do not instal any app that looks suspicious or wants to access to many features of your phone. Do not reply to text messages whose authenticity you cannot warrant. Keep anti-virus on your phone and regularly scan the device. Do not store confidential data like passwords and Internet Banking PIN on your phone. Just doing a basic hygiene check on your phone can keep the malware away.

What are the types of Mobile Banking frauds?

There are various methods to carry out mobile banking frauds successfully; some common methods are:

Network provider data breaching – Hackers can break into the system of telecom service providers and steal personal information of the people subscribing to their services. Our personal information could be vulnerable if exposed to such leaks.

Call centre fraud – While phone banking, customer service represents do a couple of checks to identify the customer after which they reveal account details. If a fraudster has access to these details, he/she can easily access the account of any individual.

Mobile phone theft – A stolen mobile phone is most vulnerable to all sorts of malpractices, especially if it has bank apps and all relevant bank information stored. Even a password-protected phone can be hacked into and used for mobile banking frauds.

How can you protect your phone?

Use password protection on your device. If available, use password protection specifically for banking apps too.
Do not store any kind of confidential information on your phone.
Disable Bluetooth when not in use. Hackers can make the most of this opportunity too.
Be alert against virus and online hazards. Use anti-virus, firewalls and encryption wherever you can.
Think before downloading any app and thoroughly check its reputation.

We hope the above practices will be of help to you and you can follow these methods to safeguard your phone.

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