Industrializing mobile financial fraud

According to a report by the Anti-Phishing Working Group, an international law enforcement, government and industry coalition focused on global response to electronic crime, the global proliferation of mobile devices has "spawned an industrialized mobile financial fraud plexus" that is driven by sophisticated technical innovation funded by new mobile malware designed to exploit mobile device vulnerabilities.

"Mobile fraud, we can clearly state, has become an industrialized process, although globally we show currently some countries are more at risk than others," said Jart Armin, Mobile Fraud Research Coordinator at APWG. "This APWG white paper helps to demonstrate the existence of such an industry and how it operates through stealthy intrusion and a crimeware supply chain."

APWG predicted mobile payments will surpass $1.3 trillion globally in 2015, representing a "mother lode of opportunity for cyber crime gangs who appreciate the vulnerabilities of these peripatetic communications and platforms."

Hot spots to watch

The report suggests potential growth in malware could extend beyond the 1.3 million malicious files already confirmed on Google Inc. Android devices. And China, with 564 million Internet users, 75 percent of whom own mobile devices, could be targeted by mobile fraud rings in the future.

Mobile banking is another area where vulnerability to financial fraud could gain exposure. "On one hand we can see just one example of a major European bank that in early 2012 had 100,000 mobile banking users, and by April 2013, 4 million," Armin said. "In contrast, there were around 50 generally known examples of mobile malware in 2010, rising in 2013 to some 30,000."

Haulting the spread of mobile financial fraud globally will require a concerted effort based on international cooperation, education and awareness, the coalition suggested. The entire report, the initial installment of the APWG’s Mobile Fraud series, is available for download at docs.apwg.org/reports/mobile/apwg_mobile_fraud_report_april_2013.pdf.

Editorial Note:

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