62.1% of UK consumers view mobile app fraud as a significant concern, while 50% are also worried about hacking, according to research by the Open Worldwide Application Security Project (OWASP) and Appdome.
“Banks and fintechs are apprehensive about potential fraud due to regulatory implications and the risk of financial losses, and consumers share these concerns,” stated Chris Roeckl, chief product officer at Appdome, in an interview.
Among 2,500 UK respondents, 41.3% reported first or second-hand experiences with cyber-attacks, mobile malware, or mobile fraud. Additionally, 26.9% indicated they or someone they know has fallen victim to social engineering scams.
The findings reveal an increasing awareness of social engineering scams, with 55.1% identifying “vishing”—where scammers deceive victims into disclosing personal information over the phone—as the top risk.
Roeckl emphasized that consumers desire proactive measures to prevent fraud attacks from occurring in the first place. The report found that 94.7% of UK customers expect mobile apps to safeguard against fraud, and 80.3% anticipate preemptive anti-fraud measures.
The survey also highlighted the importance of an app’s reputation. A significant 70.6% of respondents said they would abandon an app and advise their friends to do the same upon learning that a brand had suffered a security breach.
Trust in app developers is waning, with 25.2% of consumers believing that “developers don’t care” about protecting them from fraud or security threats, a notable increase from 9.3% in 2021.
To tackle these challenges for consumers, Roeckl suggested making systems smarter by utilizing data from user activities within the app. He explained, “There are threats and attacks on mobile devices that signal an impending fraud attempt or security breach. This data can be collected and sent from the device to a backend fraud system.”
Roeckl mentioned potential tactics to terminate fraudulent sessions, ranging from pop-up warnings to restrictions on account or payment transfers. He noted that these technologies are emerging and represent the forefront of proactive fraud prevention.
He cautioned, “If financial app developers don’t ensure their apps incorporate appropriate security features for proactive fraud reduction, legislation will inevitably be introduced. The technology exists, and mobile technology is here to stay.”
Regarding recent legislative efforts to combat fraud, including the upcoming mandatory reimbursement for Authorised Push Payment (APP) fraud and the UK Treasury’s proposal to delay payments by up to 72 hours, Roeckl remarked, “Technology can address many issues that governments struggle with, and it can help ensure payments are processed quickly and reliably without the need for legislation.”