Stolen phone? Bank apps are main target for scammers

Phone stolen? Banking apps are the main target as scammers learn how to exploit weak security controls

Bank customers are dangerously exposed to scammers due to weak security in some major banking apps, consumer group Which? warns.

Mobile banking apps allow users to make payments using their phone. But fraudsters exploit weaknesses in their security to steal from victims.

In tests, Lloyds, Halifax, American Express and Barclays had the worst security of all banks. Which? say.

A whopping £15.7 million was lost to mobile banking fraud in the first half of 2022, according to UK Finance.

Risk: If a phone is stolen, criminals can view security code messages, giving them access to victims’ accounts

Banks often send users codes via email or SMS that allow them to reset their credentials or add a new beneficiary.

But if a phone is stolen, criminals can view these messages and help them access victims’ accounts.

Which? calls on banks to stop relying on text messages to send users sensitive information.

Jenny Ross, from the consumer group, says: “A lack of strong security measures in some banks’ mobile apps is a major concern, and could put many more consumers at risk of being scammed.”

Nick White, 46, from Somerset (whose name has been changed), lost £73,000 after his mobile phone was stolen from a London pub.

Fraudsters transferred £15,000 from his personal account and £58,000 from his company after gaining access to his Barclays mobile banking app.

Nick has recovered the £15,000 from his personal account and his insurer has refunded him the lost money in the business account.

Barclays says it is constantly testing its app to provide customers with the highest level of protection.

a.cooke@dailymail.co.uk