Banking scams surge on mobile devices, BioCatch report finds

A new report by cybersecurity firm BioCatch reveals a sharp rise in banking scams, with 90% of fraud attempts now occurring on mobile devices. The report highlights a 35% increase in scams over the past year, driven by the growing use of smartphones for financial transactions.

Mobile devices dominate banking scams

According to a report by cybersecurity firm BioCatch, 90% of all banking scam attempts now occur on mobile devices, a trend driven by the widespread use of smartphones for financial transactions. The report highlights a 35% increase in such scams over the past 12 months, signaling a shift in how fraudsters target victims.

Thomas Peacock, Director of Global Fraud Intelligence at BioCatch, and Jonathan Frost, Director of Global Advisory at the same company, emphasize that mobile phones have become the primary medium for scammers. This shift is attributed to the convenience and accessibility of mobile banking, which fraudsters exploit to bypass traditional security measures.

Types of scams on the rise

The BioCatch report identifies purchase scams as the most prevalent, accounting for 33% of all scam attempts. These scams typically involve fraudsters tricking victims into paying for goods or services that do not exist.

Romance scams have also seen a significant increase, rising by 23% over the past year. Fraudsters use fake identities and emotional manipulation to deceive victims into sending money.

Investment scams remain the costliest, with victims losing an average of $6,600 per incident. These scams often involve promises of high returns on fake investment opportunities, targeting individuals looking for quick financial gains.

The role of AI in scams and detection

Artificial intelligence is playing a dual role in the evolving landscape of banking scams. Scammers are increasingly using AI to refine their tactics, such as generating convincing phishing messages or mimicking human behavior to avoid detection. Meanwhile, banks and cybersecurity firms like BioCatch are leveraging AI to detect anomalies and prevent fraudulent transactions.

Despite these advancements, the report notes that reimbursement policies in the UK protect victims financially but do not prevent scams from succeeding. This underscores the need for proactive measures to stop fraud before payments reach criminals.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

This report underscores a critical shift in the cybersecurity landscape: mobile devices are now the frontline for banking fraud. For founders and operators in fintech, cybersecurity, and consumer protection, this signals an urgent need to prioritize mobile-specific fraud detection tools. While AI offers powerful capabilities for both defense and offense, the focus must remain on prevention—stopping scams before payments reach criminals.

The rise of mobile scams also highlights a gap in consumer awareness. Even with reimbursement policies in place, the emotional and psychological impact of scams remains unaddressed. Startups in the fraud prevention space may find opportunities in developing solutions that not only detect but also educate users in real time. For banks and financial institutions, this is a wake-up call to invest in proactive measures, rather than relying solely on reimbursement as a safety net.

Key takeaways

• Mobile devices are the dominant platform for banking scams, with 90% of fraud attempts occurring on them.
• Scammers are increasingly using AI to refine their tactics, while banks leverage AI for detection.
• Reimbursement policies in the UK protect victims financially but do not prevent scams from succeeding.

FAQ

Why are mobile devices the primary medium for banking scams?

Mobile devices have become the dominant platform for banking scams due to their widespread use for financial transactions. Fraudsters exploit the convenience and accessibility of mobile banking to target victims, often bypassing traditional security measures.

How can consumers protect themselves from mobile banking scams?

Consumers can protect themselves by enabling multi-factor authentication, avoiding suspicious links or messages, and regularly monitoring their accounts for unusual activity. Using dedicated banking apps rather than mobile browsers can also reduce risk.

What role does AI play in detecting banking scams?

AI is used by banks and cybersecurity firms to detect anomalies in user behavior, identify phishing attempts, and flag suspicious transactions in real time. However, scammers also use AI to create more convincing fraud tactics.

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