In an increasingly digital world, mobile finance apps have become a cornerstone of daily transactions for millions of users globally. However, with their rising popularity comes an escalating wave of security challenges that threaten user trust and the integrity of financial systems. To shed more light into these pressing issues, Tech Achieve Media recently spoke to Jan Sysmans, Mobile App Security Evangelist at Appdome, to explore the most prevalent security threats facing mobile finance apps today and the critical protections necessary to safeguard digital transactions. In this interview, Sysmans sheds light on the tactics employed by cybercriminals, the vulnerabilities specific to the Indian market, and the advanced solutions that Appdome offers to ensure that mobile finance apps remain secure and resilient in the face of evolving threats
TAM: What are the most prevalent security challenges that mobile finance apps face today, and how do these challenges compromise user trust and security in digital transactions?
Jan Sysmans: As per Appdome’s Global Survey, 55.3% of consumers now prefer mobile applications over web-based platforms, making mobile finance apps attractive targets for cybercriminals. The survey reveals a growing demand for enhanced protection against cyber threats, fraud, and malware, with 82.4% of consumers mandating a proactive approach to fraud prevention. Additionally, 56.2% believe that mobile brands and app developers should ensure a safe consumer experience.
Mobile finance apps face several prevalent security challenges. Data breaches can lead to unauthorised access to sensitive information, resulting in identity theft and fraud. Social engineering attacks, such as phishing, vishing and smishing, trick users into revealing their credentials or downloading malware. That malware can steal data, compromise app functionality or be used for an Account Takeover (ATO) attack. Man-in-the-middle attacks intercept and manipulate data, compromising transaction integrity. Fake apps impersonate legitimate brands to deceive users, while overlay attacks capture sensitive data through fake screens. Geo-fraud manipulates location data, leading to unauthorised access and security breaches.
These security challenges undermine user trust by making digital transactions seem risky, discouraging users from engaging with mobile finance apps due to fears of data theft and misuse. Consequently, these issues significantly impact security and user confidence in digital transactions.
TAM: Given the prominence of mobile wallets and UPI in India, why is it particularly crucial to protect mobile finance apps in this region and what specific vulnerabilities do these apps face?
Jan Sysmans: Mobile apps have become the go-to channel for Indian consumers as the country embraces cashless and contactless payment methods. With the widespread adoption of UPI (Unified Payments Interface) and mobile wallets, safeguarding mobile finance apps in India is crucial. As citizens increasingly rely on these apps for their daily transactions, cybercriminals are incentivised to develop sophisticated techniques to exploit vulnerabilities. UPI payments have seen a remarkable 45% annual growth, indicating significant technological adoption. However, this also amplifies the risk of digital fraud, posing severe financial consequences if sensitive data is compromised. Common vulnerabilities include ATO (Account Takeover) attacks, ATS (Automatic Transfer System) malware attacks, phishing, vishing and smishing attacks, SIM swapping, malware infections, man-in-the-middle attacks, and social engineering tactics, all of which can undermine user trust and the overall security of digital payment systems. Therefore, robust protection of mobile finance apps is essential to ensure the safe and effective functioning of India’s digital economy.
TAM: What are the significant impacts of data breaches and cyberattacks on financial apps for both users and organisations, and how can these incidents erode trust in digital financial services?
Jan Sysmans: Data breaches and cyberattacks have profound consequences for both users and organizations, particularly in the financial sector. For users, the impact is immediate and personal, involving unauthorized transactions, identity theft, and significant financial losses. Compromised sensitive information, such as account details or UPI credentials, can lead to long-lasting damage to users’ financial well-being and personal security.
For organizations, the repercussions are equally severe. IBM’s ‘Cost of a Data Breach’ report highlights that the average cost of a data breach in India reached an all-time high of INR 19.5 crore this year, marking a 39% increase since 2020. Beyond financial losses, breaches expose companies to regulatory fines, legal liabilities, and the costly process of remediation. However, the most significant impact is the erosion of trust. In the financial sector, trust is paramount; once compromised, it can lead to customers abandoning the service, resulting in a loss of business and market share. Rebuilding trust is a long and challenging process.
The results of Appdome’s annual Consumer Expectations on Mobile App Security survey were blatantly clear. 84.0% of consumers want app makers to prevent fraud from happening vs getting reimbursed after the fraud happens.
More importantly, data breaches expose vulnerabilities and shake users’ confidence in the safety of digital financial services. Implementing robust security measures, including Generative AI-powered protections, is essential to restore and maintain trust in these critical services.
TAM: How are social engineering attacks making users more vulnerable to fraud in the financial services sector, and what are some common tactics used by attackers to exploit these vulnerabilities?
Jan Sysmans: One of the most common social engineering attacks is phishing. According to Data Security Council of India (DSCI), the national body for data protection in India, 84% of organisations acknowledged phishing as the predominant cyber threat confronting their industry. Social engineering attacks make users more vulnerable to fraud in the financial services sector by exploiting human psychology to bypass security measures. These attacks often involve convincing communications that appear legitimate, making it difficult for users to recognise the threat.
Attackers use techniques such as phishing, vishing, smishing, pretexting, baiting, and impersonation to deceive users into revealing sensitive information like passwords, credit card details, or personal identification numbers. Once attackers obtain this information, they can gain unauthorised access to financial accounts, perform fraudulent transactions, and steal funds. The increasing sophistication and realism of social engineering tactics significantly heighten the risk of fraud, eroding trust in digital financial services and causing substantial financial and reputational damage to both users and financial institutions.
TAM: How is Appdome uniquely positioned to prevent social engineering attacks in financial apps that handle sensitive information, and what advanced solutions do you offer to ensure these apps are cyber-resilient?
Jan Sysmans: Appdome is strategically positioned to combat social engineering attacks in financial apps by offering cutting-edge, AI-driven security solutions that provide proactive, real-time defenses. In an environment where mobile apps are increasingly targeted due to their accessibility and widespread use, Appdome’s approach ensures that users are protected from sophisticated attacks that exploit trust and human vulnerability.
Our solutions are specifically designed to address key vulnerabilities. For instance, our Voice Phishing (Vishing) Fraud Detection utilizes behavioral analysis to detect suspicious activities during potentially malicious phone calls, safeguarding users from being deceived into disclosing sensitive information. We also offer Remote Desktop Control Detection, which monitors and prevents unauthorized remote access attempts, ensuring attackers cannot take control of users’ devices.
In addition, Appdome can prevent FaceID bypass attacks by blocking the use of AI-Generated Deep Fakes in mobile banking apps, while our SIM Swapping Detection guards against fraudulent SIM transfers that could lead to account takeovers. We also provide Admin-SU Profiles Detection to block malicious management profiles that compromise user privacy and Trojan/Fake App Prevention to stop the installation of harmful apps.
These advanced security features are integrated directly into the app’s CI/CD pipeline without requiring additional coding, SDKs, or developer involvement, making Appdome’s solutions both powerful and easy to implement, ensuring financial apps remain resilient and secure.
TAM: How does Appdome’s GenAI-powered Threat Resolution Center improve security and trust in digital financial transactions, and what benefits does it provide for mobile finance apps in combating fraud and cyber threats?
Jan Sysmans: Appdome’s GenAI-powered Threat Resolution Center significantly enhances security and trust in digital financial transactions by providing real-time, context-specific guidance to resolve mobile threats quickly. This innovation enables mobile support teams to instantly identify threats, generate resolution steps, and improve response times, ensuring that users can return to their apps swiftly and securely. For mobile finance apps, this center combats fraud and cyber threats by leveraging GenAI to synthesize vast amounts of data into actionable instructions, reducing the complexity and cost of threat resolution. The integration of ThreatCode and Threat Resolution Agent further optimizes this process by delivering step-by-step remediation tailored to the specific threat, device, and operating system. This not only improves the end-user experience but also boosts productivity for support teams, decreases the mobile attack surface, and enhances overall brand loyalty by prioritizing user security and satisfaction.
