Technological advancements are on the rise, coming from all directions. That means, however, that technological fraud is too.
Half of the world’s total population now own a smartphone, and two billion of these individuals are using mobile banking. This is critical to the future of tech development, but it comes with an increased risk and prevalence of fraud.
In this post, we're going to look at the key mobile fraud trends for 2022 and how they can be prevented by using the right services.
Mobile fraud trends for 2022
Mobile banking fraud is rising with usage
According to Insider Intelligence's Mobile Banking Competitive Edge Study, 89% of survey respondents said they are using mobile banking to manage their finances. This kind of growth is unprecedented and shows that there is a clear preference for online banking, sometimes through online-only banks.
This growth is followed by an equal rise in fraud, though, and neither consumers nor financial institutions are entirely prepared for it. Mobile banking fraud happens when a criminal gains unauthorised access to a victim's bank account.
The number of recorded cases of mobile banking fraud rose by 57% in the first six months of 2021, and this number will likely continue to rise each year as mobile banking increasingly becomes the norm.
It's easier than ever for fraudsters to acquire a person's digital information
Despite advances in cybersecurity technology, it's become easier than ever to acquire someone's digital information. From rapid advancements in technology to the number of connected devices and accounts a person is interacting with, the gateways to a person's digital information are growing exponentially.
In 2021 alone, more than 281.5 million people had their digital information compromised. It's safe to assume that this number will continue to grow over the coming years.
As such, businesses (and particularly those with access to financial assets) must guard individuals against the growing threat of mobile fraud.
Account takeover fraud (ATO) is a prominent motivation
One of the most prominent forms of fraud is account takeover, or ATO. ATO is when a fraudster poses as a customer to gain access to the victim's account, then takes full control of the account after gaining access.
With any type of account, this can present an issue. It can give access to other accounts, private information, and in worst-case scenarios, valuable assets. While one might assume that ATO fraud is difficult to pull off, it's one of the leading causes of fraud. 89% of digital fraud losses are due to ATO, and events of ATO fraud have surged 307% since 2019.
4 out of 5 SIM swap fraud attempts are successful
Another popular form of fraud is SIM swap fraud. This type of fraud occurs when a fraudster, pretending to be the victim, gains access to a person's SIM card through their mobile provider. The fraudster then moves that person's phone number to a new SIM card in the possession of the fraudster, rendering the victim's phone useless and sending all of their calls and texts to the fraudster.
The result is that the fraudster can now receive 2FA codes and easily bypass account security protocols. This makes ATO and other types of fraud easy to achieve.
Despite how complex such a scam might be, SIM swap fraud is successful in every 4 out of 5 attempts.
Protection against mobile fraud starts here
JT has created three key services to help businesses protect their customers against these types of fraud and others. Each is a preventative measure, designed to keep your customers and their assets secured with automatic systems.
JT Monitor observes a person's SIM through their network provider. It checks a person's SIM card information against their operator interactions to flag potential instances of SIM swap fraud before they're able to take place.
JT Signal is a suite of APIs designed to provide real-time signalling data. This makes it easier to prevent ATO fraud, call forwarding fraud, and other common types of mobile scams. You can get access to information that will inform you of whether a number has potentially been compromised recently, allowing you to stop fraudulent interactions in their tracks.
JT KYC (Know Your Customer) gives you access to valuable operator data. You can check this data against a customer's data to create a deeper, more secure authorisation standard at your business. You can validate a customer's information with the data from our operators in real-time.
Partner with JT today and keep your customers safe
JT works with Mobile Network Operators worldwide to deliver intelligent data solutions to help combat fraud. Working across multiple jurisdictions and sectors, JT’s products assist with strong customer authentication.
Please reach out to our team so we can discuss your requirements and how we can help.