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Mobile Banking Scams Surge 35 % as Fraudsters Shift to Smartphones

A new study by fraud‑analysis firm BioCatch shows that banking scams targeting mobile users have risen 35 % over the past year, shifting the focus from landlines and email to smartphones. The report finds that 90 % of all scam attempts now occur on mobile devices, with romance scams up 23 % and investment scams the most expensive, averaging $6,600 per case. While purchase scams remain the most common, accounting for 33 % of attempts, the surge in mobile banking fraud poses a growing threat to consumers worldwide. BioCatch notes that both scammers and banks employ artificial intelligence, with AI lowering the barrier for fraudsters and enabling banks to detect manipulation before a transaction is authorised. According to Thomas Peacock, director of global fraud intelligence at BioCatch, social‑engineering scams have not diminished in sophistication, and AI has amplified their reach. Jonathan Frost, director of global advisory, warns that scammers can persuade customers to transfer money without breaking into accounts, making prevention the banks’ primary challenge. In the United Kingdom, victim reimbursement protects customers after a scam but does not stop the fraud, highlighting the need for proactive safeguards to keep money from reaching criminals.

· TechRadar

The essential points

  1. 01Mobile banking scams up 35 % in the last year, now 90 % of all fraud attempts.
  2. 02Romance scams rose 23 % and investment scams average $6,600 per case, the most costly.
  3. 03AI lowers barriers for scammers and helps banks detect manipulation before authorising payments.
  4. 04UK victim reimbursement covers losses but does not stop fraud, underscoring the need for preventive measures.
The full brief

A new study by fraud‑analysis firm BioCatch shows that banking scams targeting mobile users have risen 35 % over the past year, shifting the focus from landlines and email to smartphones. The report finds that 90 % of all scam attempts now occur on mobile devices, with romance scams up 23 % and investment scams the most expensive, averaging $6,600 per case. While purchase scams remain the most common, accounting for 33 % of attempts, the surge in mobile banking fraud poses a growing threat to consumers worldwide.

BioCatch notes that both scammers and banks employ artificial intelligence, with AI lowering the barrier for fraudsters and enabling banks to detect manipulation before a transaction is authorised. According to Thomas Peacock, director of global fraud intelligence at BioCatch, social‑engineering scams have not diminished in sophistication, and AI has amplified their reach. Jonathan Frost, director of global advisory, warns that scammers can persuade customers to transfer money without breaking into accounts, making prevention the banks’ primary challenge.

In the United Kingdom, victim reimbursement protects customers after a scam but does not stop the fraud, highlighting the need for proactive safeguards to keep money from reaching criminals.