4 Ways Fraudsters Exploit Mobile Devices
Customer expectations for frictionless mobile experiences lead to more opportunities for fraudsters, particularly when authenticating devices. And it’s due to variables that change suddenly, such as new phone numbers, SIM cards and carriers.
The Atlanta-based fraud prevention firm IDology identified ways scammers take advantage of the mobile authentication process, such as through the interception of inbound communication and one-time passwords.
IDology also announced the addition of two digital authentication solutions: ExpectID Mobile Authentication and ExpectID Secure SMS, to its fully integrated platform. The solutions help credit unions and other financial institutions increase customer success in the digital environment and can securely authenticate new and existing customers behind the scenes while eliminating factors that negatively impact the customer experience.
“The use of unsafe and vulnerable one-time passcodes is no longer viable,” John Dancu, CEO of IDology, said. “It’s time for businesses to reimagine digital authentication so they can serve a growing base of mobile customers with an experience that is simple, fast and frictionless, while also deterring digital fraud. Our solutions give businesses the safe authentication they need to not only improve the customer experience, but also provide a higher level of protection and peace of mind for mobile transactions.”
According to IDology, the top ways fraudsters exploit mobile devices are:
1. SMS interception: Seizing inbound communication such as one-time passcodes to access bank accounts. Increased by 88%.
2. SMS swapping: Fraudsters call a center to reactivate a mobile number to a SIM in their possession; all communication is rerouted to that device. Up by 200%.
3. SIM cloning: Copies SIM values and impersonates subscriber; obtains all incoming communication. Increased by 25%.
4. Recycling phone numbers: Reactivating a number attached to another person’s account. Up by 11%.
IDology maintains by associating real-time mobile data with a customer, a unique mobile identifier can be created and continuously authenticate that customer throughout the customer lifecycle, neutralizing password burdens and instantly building trust in the business-customer relationship.
The new Digital Authentication solutions monitor and account for different types of digital fraud and high-frequency mobile change events such as SIM cloning, SIM swapping and recycled phone numbers. Information is captured and provided automatically in real-time, enabling organizations to determine the safety of an interaction and make an educated decision on whether or not to escalate it to another authentication method.