Mobile Banking Fraud Is on the Rise: Here’s What You Need to Know
Dave Maxfield

Mobile banking has revolutionized how we manage our finances—making transactions, checking balances, and paying bills easier than ever. But as convenience grows, so do the risks of mobile banking fraud. At Dave Maxfield Attorney, LLC, we help consumers who’ve been targeted by bank fraud and unauthorized account access. In this post, we’ll break down how mobile fraud works, the most common threats, and what you can do to protect yourself.

What Is Mobile Banking Fraud?

Mobile banking fraud occurs when scammers gain unauthorized access to your bank account using your mobile device or mobile app. This form of bank fraud is increasingly common as more people rely on smartphones for everyday financial tasks.

Common Vulnerabilities in Mobile Banking

Here are four major ways fraudsters exploit mobile banking users:

1. SIM Swapping

SIM swap fraud happens when a criminal contacts your mobile carrier pretending to be you and convinces them to transfer your number to a new SIM card. Once they control your number, they can intercept two-factor authentication (2FA) codes and gain access to your bank accounts.

Warning signs:

  • Unexpected loss of cell service

  • Notifications about SIM changes or number transfers

2. Malware and Spyware

Cybercriminals may trick users into installing malicious apps or files that secretly monitor their keystrokes or take screenshots. These apps often appear as flashlights, games, or fake security tools.

Tip: Never install apps from outside the official app store.

3. Fake Banking Apps

Scammers create phishing apps that mimic legitimate bank apps. If you accidentally download one, it may capture your login credentials the moment you enter them.

Red flag: Apps with low ratings, strange permissions, or broken links to customer support.

4. Public Wi-Fi Exploits

Using mobile banking apps on unsecured public Wi-Fi networks (e.g., in coffee shops or airports) opens the door to man-in-the-middle attacks, where hackers intercept your data.

How to Protect Yourself from Mobile Banking Fraud

At Dave Maxfield Attorney, LLC, we believe prevention is your best defense. Here are six best practices to secure your mobile banking activity:

  1. Download only official banking apps from Google Play or the Apple App Store.

  2. Use strong, unique passwords for banking apps—and enable biometric authentication (like Face ID or fingerprint).

  3. Turn on two-factor authentication (2FA) for all financial apps.

  4. Avoid banking over public Wi-Fi. Use a secure connection or mobile data instead.

  5. Review app permissions. If a banking app asks for access to your camera, microphone, or contacts—it could be a red flag.

  6. Install mobile antivirus software to scan for malicious apps and links.

Victim of Mobile Banking Fraud? Here’s What to Do

If you suspect you’ve been a victim of unauthorized account access or mobile bank fraud, take these immediate steps:

  • Contact your bank and report the fraud.

  • File a police report and request a fraud affidavit.

  • Document everything, including app activity and phone changes.

  • Call a consumer protection attorney to understand your legal rights.

We’ve helped South Carolina consumers recover losses and fight back against negligent banks that failed to protect their customers.