Why You Need to Step up Your Precautions When Using Mobile Banking Apps

By Britt Erica Tunick

Whether or not you are a long time mobile banking enthusiast, it is more than likely that at some point since the beginning of March you have used a mobile application to handle your banking or make a payment. Just make sure you do so cautiously and are aware of the increase in fraudulent activity in this area.

While mobile banking experienced widespread adoption in recent years, social distancing and efforts to minimize unnecessary exposure to the coronavirus have led to a 50% increase in activity since a year ago, according to a recent release from the Federal Bureau of Investigation. Added to that is the fact that the Coronavirus Aid, Relief and Economic Security (CARES) Act meant the issuance of roughly 160 million stimulus checks, many of which were deposited remotely. Unfortunately, none of this has been lost on cyber criminals, who have stepped up their efforts on the mobile banking fraud front.

The FBI recently issued a warning telling people to be cautious when it comes to using mobile banking apps. Following are a few of the ways that fraudsters are taking advantage of people and things to be on the lookout for:

• Cyber thieves are creating phony banking apps that mimic those offered by legitimate banks. Since the quality of these imitations can be extremely good, many people are fooled into entering their login details. Criminals are then able to clear out an account or steal personal information. If you are downloading a banking app to your phone, make sure to do so directly from your bank’s home page or through a reputable app store.
• Remember to never download or click on a link sent to you that you weren’t expecting or that comes from someone you don’t know. Cyber thieves are utilizing malware known as Trojans that can be hidden within other programs, including games. Once these programs are downloaded, they trigger another program that can activate a user’s real banking app, without an individual even being aware that anything has happened. Again, make sure not to download games or any type of attachment that you cannot verify has come from a reputable source.
• While multi-factor authentication can be annoying at times, make sure to use it if your bank app offers it, as this is a simple way to lower the risk of someone gaining unauthorized access to your accounts. Similarly, make sure to use a strong password with varying symbols, numbers, and a combination of both lower case and upper case letters, and do not store it on your computer’s browser. If remembering passwords is a problem, take advantage of one of the many password manager programs that now exist where you can safely store passwords for all of your accounts and apps.
• Take advantage of text or email fraud alerts provided by your bank’s app, as doing so can allow you to respond quickly to any suspicious activity and hopefully avoid any losses.
• Never use public Wi-Fi or public Wi-Fi hotspots that are not secure.