It’s not easy to think of a unique app idea. Do you know how many apps you have on your phone? According to the latest data, Android users were able to choose between 3.48 million apps, making Google Play the number one application store in 2021. Even though the exact number of apps is unknown since Google removes low content regularly, it’s clear that the app statistics are steadily increasing.
Of course, with such numbers comes great responsibility. Even though the truth hurts, one thing’s clear – some businesses aren’t prepared for the rapid success of their mobile apps. This makes them a target for scammers.
So, let’s cut to the chase. If you have doubts regarding your mobile fraud prevention measures, keep reading to find out more!
More Risks to Consider
The global pandemic accelerated the shift to the digital world, affecting internet users and businesses. Many companies adopted and used this opportunity to branch out to e-commerce. From basic browsing to in-app purchases and online shopping – it’s no surprise that most people spend at least a few hours per day on their phones.
Unfortunately, not all stories have happy endings. Over the recent years, the growing popularity of mobile apps provided fraudsters with a wider platform for their scams. Even though businesses strive to expand and enforce successful apps into their strategy, there are dangerous risks to consider. In other words, the more features your application provides, the more challenging it is to safeguard your business.
The Impact of Fraudulent Apps
Fake or fraudulent apps are similar to legitimate apps. They are created to mistake people into believing that it’s an actual application they can download to their phones. Once that’s done, you are left with a few bad scenarios:
- Fraudsters are smart, and they want to get away with their scams; that’s why sometimes, there are barely any changes even if you download the fake app. Victims lose only a few dollars spent on the app.
- A more complex scamming technique is when the fraudster collects money from ad revenue after flooding the victim with multiple ads to their phone. If you aren’t the best at technology, it might be difficult to remove the fake app and its adware.
- The last and the most damaging category in the fake apps department is malware applications. Mobile applications containing this malicious software ruin your phone due to viruses. Once infected, hackers can access your passwords and other valuable data.
What is Mobile App Fraud?
In simple words, mobile application fraud is any fraud that involves the usage of an app. For instance, scammers hack the app systems to gain access to customers’ personal details. Fraudsters also make purchases using fake identities, stolen credit card details, or compromised accounts.
There are all sorts of scams, and nobody’s protected. As mobile payments play a huge role in the app industry, there’s a chance to slip and leave security gaps for fraudsters to strike. In general, apps are an easier target for hackers since there are fewer security tools available. That’s why the first step for businesses is to acknowledge the fact that fraud exists and try to find the most appropriate prevention measures.
Types of Mobile App Fraud
Even though the internet has been for some time now, people tend to overshare and post too many personal details online. Being naive and unaware of the potential types of fraud doesn’t help either. While it might be enough to download free security tools for your website, it’s not enough for mobile applications.
Everyone knows that payment fraud is quite common on mobile apps, but what about other fraud categories? Here are the most common:
- Device fraud. Fraudsters use this method to collect outdated mobile devices. Afterward, they are set up to automatically install certain applications, post reviews, or click on ads. This scheme can be described as fraud-as-a-service.
- Click injection. This type of fraud works only on Android. Scammers design an app that detects when users install other apps. This way, they fake an advertising click, giving the fraudsters credit for the installation.
- Mobile payment app fraud. Fraudsters try to convince users that they are from a legit firm, then use payment apps, such as Venmo, to receive money transfers to an untraceable bank account.
Ways to Improve Mobile App Security
There isn’t one golden rule or method to secure all your mobile apps against criminal activity. Hackers don’t restrict themselves to a single type of cyber attack either. That’s why an effective security system consists of many layers. In case one security method fails, you’ll rely on the other layer of security that will prevent the criminal from a successful attack.
One of the ways to improve mobile app security is to encrypt data. This way, it becomes safer than stored in plain text. Usually, the safest way to transmit data is usually tokenization. It can be described as exchanging sensitive data for nonsensitive data or “tokens.”
For instance, digital wallets use this technology. Once you make a payment, only the payment platform is able to trace your actual bank account number back to your card. Even if hackers access tokenized data, it’s useless for them since it’s impossible to do anything with it.
Another obvious method to improve your mobile app security is to pay more attention to your passwords. Sadly, even the strongest passwords can be compromised, especially when people write them down, share them or recycle the passwords for various apps and websites.
A solution to this issue is two-factor authentication, a method of confirming a user’s identity via fingerprint or phone number, for example. If a successful password entry prompts you to enter a code sent through SMS, fraudsters have no chance but to step back.
How to Protect your Business from Fake Apps?
We’ve already established ways to protect yourself from fraud and malicious apps, but what about your business? Maintaining reputation and satisfying your customers’ needs are key components of success. If your company has an app, it’s essential to monitor applications and third-party websites using AI-powered tools.
In today’s B2B sphere, it’s also extremely important to know who you’re partnering with. To avoid mistakes and unwanted business relationships, you can check the validity and the background of an organization using a special, automated Know Your Business (KYB) solution. With this speedy fraud detection service, you can save time and money. To find out more, visit this website.
Final Thoughts
Securing mobile apps might be a tough nut to crack. Keeping a watchful eye on your private information is always a good idea when it comes to minimizing risks online. Be vigilant; don’t forget to update your password and use multi-layer protection. The same rules apply to your business. If a fake app is detected during monitoring, it needs to be taken care of by professionals to avoid putting your clients’ data at risk.