Beware of Mobile Banking Fraud

Consumers typically use their bank’s mobile app to conduct banking on-the-go. Banking apps can be used to check balances, pay bills, make deposits and transfer funds, without visiting a bank’s physical location.

The use of mobile banking apps has increased drastically during the COVID-19 pandemic. A recent CNBC article claimed there was an 85% increase in mobile banking traffic in early April. According to the FBI, mobile banking has surged 50% since the beginning of 2020. These numbers show that stay-at-home orders, temporary business closures and COVID-19 fears have accelerated mobile banking adoption among a large portion of the population.

Here are a few tips to protect yourself from mobile banking fraudsters:

• Obtain apps only from trusted sources, such as official app stores and bank websites.
• Enable two-factor or multifactor authentication on devices and accounts.
• Use multiple types of authentication for accounts, if possible.
• Monitor where your personal information is stored
• Do not click links in emails or text messages; ensure these messages are coming from your financial institution by double-checking email addresses and details or calling your financial institution to verify.
• Do not give two-factor passcodes to anyone over the phone or via text.
• Create unique passwords that contain upper case letters, lower case letters, symbols and a minimum of eight characters.
• To help with remembering your passwords, use a password manager or password management service.
• Do not use common passwords or phrases, such as "Password1!" or "123456."
• Do not reuse the same passwords for multiple accounts.
• Do not store passwords in written form or in your phone’s Notes app.
• Do not give your password to anyone; financial institutions will not ask for this information over the phone or by text message.
• Regularly monitor your financial accounts and call your financial institution immediately if you do not recognize a charge.
• Keep your smartphone up to date; install all security updates immediately.
• If a banking app seems suspicious, call your bank.