Somehow, our mobile devices have managed to gain control of our lives. At the beginning of the process, our relationship with our “phones” was passive. For example, we looked things up on search engines or used the device for GPS purposes, or simply to say “Hello” in the form of answering a human voice or responding to texts. Today, this has escalated, and your mobile device wants to rob you!
In 2019, our devices are continuing the trend of turning on us and the objective is a fraud. Fraudsters are actively trying to separate us from our money.
Obviously, the devices we use are tools. For some of us, the device is almost like a friend or companion. To a fraudster, our dependency on these devices is an Achilles heel. Ironically, Millennials are the most susceptible to fraud. I use the term ironic with purpose. We would believe the Millennial generation to be the savviest. In fact, they are so used to the technology they rarely question it – and that’s the problem.
The Numbers are Staggering
To give you an idea of our dependency on mobile devices, during the “Black Friday” period of 2018, the Digital Identity Network tracked that worldwide about 60 percent if all retail payments were done through mobile devices. The transactions in that period amounted to about $2 billion. As huge as the retail industry in its association with mobile devices, financial services is even larger. The growth has been exponential. In 2015, about 18 percent of us banked or made payments electronically through our devices in 2019 it has been estimated that we’re approaching 68 percent. This much activity through our mobile devices has created fertile ground for fraud.
Among the many scams that are being seen include payment card fraud where credit card numbers are being stolen. In fact, more than half of all retailers are concerned with credit card theft. However, fraudsters don’t necessarily need your credit card number to be you. If you’ve added your mobile device to a bank account, fraudsters can access it and they can make ATM withdrawals.
Malware is on the upswing in mobile channels and accounts for close to 20 percent of fraud. The Malware comes into your phone from multiple sources and whether it is through open Wi-Fi networks, such as your local coffee shop, or the interception of passwords through all kinds of Phishing scams.
Mobile app fraud is also on the rise. The creators of the apps understand that most users are in a rush and/or due to the small size of the mobile device screen itself, it’s relatively easy for a fake app to impersonate the real thing.
While these, and other scams associated with mobile devices may seem somewhat different, they share many characteristics in common. In fact, as sophisticated as mobile fraud may appear, the origins of the fraud have much in common with conventional types.
Mobile Fraud Commonalities – Your Mobile Device Wants to Rob You
Let’s start with a need. Fraudsters commit scams because they need something and usually, it’s money. The Juniper Research organization projects in 2019 in the U.S. alone, there will be in excess of $22 billion in online and mobile fraud next year. In only three years, it could be $48 billion. The pot of gold is too much for fraudsters to ignore.
The need is fueled by opportunity. Mobile device use is so rampant, fraudsters know there is little oversite with most users. To that end, it is important to never use a cellphone to make financial transactions in an open Wi-Fi network, to always check credit scores and credit card statements and to be cognizant where and when passwords and credit card numbers are revealed. Always be cognizant that the app being downloaded is the real app and not a spoof.
Rationalization in mobile device fraud is what I call “The Awakening,” or the end to naivete. Online theft is criminal activity devoid of ethical behavior. Frequently, the players are foreign entities with no connection whatsoever to those being defrauded. When an individual who discovers fraud as the result of a mobile device scam they are frequently “shocked” to be victims. The good news is that it’s nothing personal. That’s the bad news too. Unless vigilance and corrective action are taken, it will keep happening as the information of your vulnerability gets sold and sold again.
