Mobile app fraud is a scam involving the illegal solicitation of personal information or financial data from smartphone users. It’s a multi-billion dollar problem that affects everyone from small businesses to large multinational corporations.
Fraudsters are increasingly targeting apps that store payment credentials and other sensitive information. This is because they can phish for this information in the hopes of creating a rogue account or breaking into a legitimate one.
The simplest form of app fraud involves fake apps that mimic popular ones on the App Store or Play Market. These apps look and function as the real thing, but they’re designed to scam users out of a few dollars or more.
Another type of fraudulent app is a repacked version of an open-source app that adds ads to the free version of the app. These ads are annoying to users, but they help the app maker make money on ad revenue.
The Rise of Mobile App Fraud: Understanding the Threat and Implementing Solutions
Adware: The most dangerous type of fraudulent app is adware that can infect your device with malware. These viruses can steal your passwords and other private information, including credit card details, bank account numbers, etc.
Microtransactions: These in-app purchases have proven to be a lucrative market for developers. They can range from downloading songs to upgrading a character’s weapons in an online game.
As a result, a growing number of fake microtransaction-based applications are stealing users’ money and compromising their accounts. These attacks are particularly prevalent in online games, where microtransactions can be worth over $50 billion annually.