Mobile Fraud Risks

Fraud Follows as Mobile Adoption Surges

Global trends show the volume of transactions made using mobile channels increasing almost in sync with fraud attempts via mobile channels.
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Attacks Targeting Mobile Channels Continue to Rise

Mobile Fraud Patterns
Many businesses are investing in digital transformation and prioritizing mobile apps as a strategic way to reach and engage with new consumers and retain and upsell to their existing consumer base as preferences for mobile transactions surge. The volume of transactions through mobile channels continues to increase globally as consumers embrace mobile payments through digital wallets or alternative mobile payment channels. In 2022, 77%  of the transaction volume seen in   LexisNexis® Digital Identity Network® came from mobile devices, compared to 72% in 2021. Given the strategic importance of this channel, mobile fraud is a significant concern.
Mobile apps and mobile devices often contain considerable amounts of personal data including banking details, digital wallets, access to emails and other sensitive information, making them an ideal target for identity theft and fraud. Fraudsters not only look to exploit the vulnerabilities in mobile apps but are also targeting mobile device users with social engineering tactics and elaborate scams, making it challenging for consumers to discern the deception.

Mobile fraud attempts can occur at various stages of the customer journey:
Fraudsters attempt to create fraudulent accounts using compromised credentials or synthetic identities to carry out malicious activities. The highest mobile attack rate in 2022 was seen at the point of account creation, according to data from LexisNexis® Digital Identity Network®. 1 in 11 new account creations across digital channels, including mobile app and mobile browser, was seen as an attack.

Fraudsters may also attempt to gain unauthorized access to legitimate consumer accounts by exploiting vulnerabilities in the login process or leveraging social engineering techniques to coerce consumers. The mobile app attack rate seen in LexisNexis® Digital Identity Network® for logins increased by 104% in 2022 vs 2021.

Fraudsters may try to take control of consumers’ accounts through password reset attacks. The highest increase in mobile attack rate seen in LexisNexis® Digital Identity Network® was at the point of password reset, increasing from 1.7% in 2021 to 3.9% in 2022, a 134% increase. The password reset attack rate increased even more on mobile apps: 231%.

Download the infographic for other key insights on mobile fraud across the customer journey.

Mobile fraud poses a significant risk for organizations operating through this channel and can jeopardize both consumer trust and financial stability. Organizations must adopt a proactive fraud prevention strategy to safeguard their business and their customers against mobile fraud, maintain trust and provide positive mobile experiences.

LexisNexis® Risk Solutions helps businesses fight against mobile fraud with confidence. Download the solution brief for insights on assessing the anomalies associated with the growing number of attacks targeting the mobile channel and providing trusted customers with a positive experience on their chosen device .

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