Fraud is on the rise and part of it is due to the growing adoption of mobile banking, according to a new report from Advanced Fraud Solutions (AFS).
The deposit fraud detection software provider’s new report highlights how the increasing adoption of mobile banking has created new opportunities for fraud.
“The new normal has forced financial institutions and their customers to adopt mobile banking as the go-to means of check deposit,” said Ted Kirk, VP of strategic partnership at AFS.
“Consequently, the popularity of mobile banking has also led to new and revamped fraud tactics centred around mobile check deposit. Most recently, for example, we’ve seen an uptick in unemployment fraud, romance scams, and stimulus-related fraud schemes. Financial institutions that don’t step up the security of their mobile banking channel might be at risk to these schemes.”
The paper reveals that the use of mobile banking apps has skyrocketed since the beginning of the year. At the same time, the FBI has noted a 50% spike in mobile banking since the beginning of year. And that fraud operators are actively looking to “exploit new mobile banking customers using a variety of techniques.”
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