Mobile banking has made life easier – but it’s also made life easier for fraudsters. With mobile banking fraud hitting record levels, criminals are using increasingly sophisticated tactics to steal money and create banking security threats.

For the first time, mobile banking fraud has overtaken internet banking fraud, and experts warn the trend is only set to rise. With more than 60% of UK adults now using banking apps, fraudsters are targeting customers as the weakest link in the security chain.

So, what are the biggest threats to your bank account, and more importantly, how can you stay safe? Let’s break it down.

1. Account Hacking – When Criminals Take Over Your Bank App

Fraudsters can hijack your account by stealing your login details and accessing your banking app on their own device. They often trick victims into downloading fake apps, clicking on phishing links, or entering details on bogus websites.

How Banks Are Fighting Back

• Most banks now use multi-factor authentication (MFA) – requiring a password and a physical security check (such as a fingerprint, face scan, or app approval).
• Some banks, like Chase, Monzo, NatWest, and Starling, have introduced selfie video authentication to confirm identity changes.
• Security codes via SMS are being phased out because they can be intercepted by Sim swap scammers.

How to Protect Yourself

✔ Use strong, unique passwords – and a password manager so you don’t have to remember them.
✔ Enable MFA on all financial accounts.
✔ Avoid public Wi-Fi when logging into banking apps.
✔ Only download apps from official stores like Apple App Store or Google Play.
✔ Update your phone’s software regularly and install reputable antivirus software.

2. Stolen Card Details – How Fraudsters Use Your Card Without Having It

Most card fraud happens remotely, using stolen details from data breaches or phishing scams. While fraud losses fell to a nine-year low in 2023, card ID theft (where fraudsters use stolen details to take over accounts or open new ones) has reached record levels.

How Banks Are Fighting Back

• AI-powered fraud detection – spotting suspicious transactions in real time.
• Instant push notifications – banks like Monzo and Starling alert customers immediately when money moves in or out.
• Online verification improvements – stricter ID checks when shopping online.

How to Protect Yourself

✔ Don’t save your card details on retailer websites – use digital wallets like Apple Pay, Google Pay, or PayPal instead.
✔ Check your privacy settings on social media to reduce data exposure.
✔ Be wary of phishing emails pretending to be from your bank or online shops.
✔ If your card is lost or stolen, freeze it via your banking app (except Co-operative Bank, which doesn’t yet offer this feature).

3. Phone Theft – When Criminals Physically Steal Your Device

Phone thieves don’t just want your expensive handset – they want access to your bank accounts. Some shoulder-surf victims, watching them enter passwords and PINs before stealing the device.

How Banks Are Fighting Back

• Some banks, like Monzo, Starling, and Chase, demand a photo ID or selfie video before allowing login on a new device.
• Most banks use geolocation data to check if transactions match your usual patterns.

However, some banks still have weak defences. A 2023 Which? investigation found that Halifax and MBNA only required a credit card number and a security code via SMS to reset login details – too easy for thieves to bypass.

How to Protect Yourself

✔ Set a unique Sim PIN to stop criminals using your Sim in another phone.
✔ Turn off preview notifications – so texts and emails don’t appear on your lock screen.
✔ Register your phone with Apple’s ‘Find My’ or Google’s ‘Find My Device’ – allowing you to remotely lock and wipe your phone if stolen.
✔ Avoid storing payment cards inside your phone case.

4. Sim Swapping – When Scammers Hijack Your Phone Number

Sim swapping happens when criminals trick your mobile network into transferring your number to a new Sim card. Once they control your number, they can intercept security codes, take over your bank accounts, and even bypass MFA.

How Banks Are Fighting Back

• Many banks now flag recently swapped Sims as high-risk and block transactions.
• Chase, Monzo, and Starling have eliminated SMS security codes, making this attack less effective.
• However, Lloyds and Nationwide still use SMS-based identity checks, making customers vulnerable.

How to Protect Yourself

✔ Ask your mobile provider to add extra security, such as requiring a unique PIN before making account changes.
✔ Watch for warning texts or emails about Sim swaps – if you didn’t request one, call your provider immediately.
✔ Avoid using SMS for security codes – use authentication apps like Microsoft Authenticator instead.

5. Impersonation Scams – When Fraudsters Pretend to Be Your Bank

One of the most common scams involves criminals posing as bank staff, police officers, or telecom providers to trick people into sending money.

Scammers may:

• Fake their phone number to look like your bank’s real number.
• Claim your account is at risk and ask you to transfer money to a ‘safe’ account.
• Send texts with links to fake banking websites.

How Banks Are Fighting Back

• Most banks now block fraudsters from spoofing their phone numbers by using the Do Not Originate (DNO) list.
• The Confirmation of Payee system warns customers if a recipient’s name doesn’t match the bank details entered.

How to Protect Yourself

✔ Be suspicious of ‘urgent’ requests – banks will never ask you to transfer money or share security codes.
✔ Don’t trust caller ID – even if a number looks legitimate, call your bank directly using the number on your card.
✔ Never share passwords or PINs – genuine banks will never ask for them.
✔ Don’t install remote-access software if a caller asks you to – this gives scammers control of your device.

Final Thought – Stay One Step Ahead

Fraudsters are constantly evolving their methods, but you can stay ahead by following these key rules:

✅ Use strong passwords and multi-factor authentication
✅ Be careful where you enter your card details
✅ Secure your phone and Sim against theft
✅ Avoid SMS-based security if possible
✅ Be suspicious of any unexpected contact from ‘your bank’

Banks are improving security, but fraudsters are still finding new ways to trick customers. By staying alert and using these simple precautions, you can protect your money and your data.