App Stores Confirm Mobile Fraud is Increasing

New reports reveal that mobile app fraud is continuing to increase in frequency and complexity. Learn how app stores are protecting users, and how you can build a secure app.

tech
September 15, 2022
App Stores Confirm Mobile Fraud is Increasing

With its dedication to keeping its users and store safe, Apple regularly analyzes fraudulent activity and allocates resources to stopping criminals in the digital space. Though strong safety measures are taken to prevent these types of occurrences, cybercriminals are becoming more complex and developing new ways to target app users. In 2021, Apple released its first fraudulent analysis report which showed that it stopped $1.5 billion in potentially fraudulent transactions, and turned away almost 1 million fraudulent mobile apps. 

Apple recently released the latest 2022 fraud analysis report which had even higher numbers of fraud. 1.6 billion fraudulent transactions were attempted and 1.6 million potentially harmful apps were denied in the apple store. Though Apple is a well-trusted company with relevant information to share, this is only one report of app fraud. It is likely that there have been more occurrences that went undocumented. Consumers are highly aware of the cybercrime happening across the digital space, and more and more news outlets are reporting on this type of information. We live in a time where users put all of their potentially identifiable and vulnerable information into their apps. This means that for mobile app users, safety and security are the number one priority. 

What Type of Fraudulent Activity is Happening in the Mobile App Space? 

There is a variety of ways that mobile apps have been linked to fraudulent activity. One of the most common activities linked to app fraud is false transactions and credit card theft. Criminals will hack into your mobile app and gain access to your financial information, either through data stored in the app or through an active transaction. In some cases, this data is then sold and used to make larger transactions. In other cases, the cybercriminal will make small almost unnoticeable charges over time which can be harder to detect. 

Another common mobile app crime is done through the development of actual fraudulent apps. This can happen when cybercriminals duplicate existing apps to make them look legitimate, or by creating completely new apps that are not secure. Oftentimes, these apps are legit in some ways but have hidden features that give hackers access to your data, credit card information, or personally identifiable information. Users will download the app under the impression that there are no issues, just to find out it was hiding unsecure features. In other cases, these apps may have hidden abilities to track your movement across other apps and therefore access your data on those apps. Sometimes, mobile apps have hidden applications bound to them that you won’t realize have been downloaded. This app running in the background can leak and cause vulnerabilities to your privacy as well. 

How are App Stores Preventing These Crimes?

Analyzing crime and fraud is only the first step to stopping them. What is even more important is developing ways to stop these crimes in their tracks before they are able to secure any data. App stores have allocated large funds to people, software, and resources that can help detect fraudulent apps, users, and developers. Since enforcing such strong measures, Apple has removed more than 150,000 developers from finishing enrollment, terminated close to 1M pre-existing developer accounts, and deactivated over 170 million user accounts associated with Fraud. Apple, along with other app stores like Google Play continues to take cybercrime seriously and take the necessary measures in stopping it. 

Increase Your Security To Keep Your Users Safe

It's safe to say that with the levels of cybercrime increasing so significantly, users are paying more attention to the safety features of the apps they use. If you want to keep your app safe and keep your users' trust, make sure you are implementing safety measures through every stage of development. Taking measures such as encrypting source code, securing the backend, using high-level authentication, securing data in transit, and using the latest protection measures will make your app less likely to fall victim to the scheme. In addition, unless the nature of your app requires financial information, do not request unnecessary personal data. For users, it's just as important that your app works well as it is that it's safe and secure.

Secure Development with Invemo LLC

With over 10 years of experience, Invemo LLC can take your idea and build your dream app, all while keeping it both functional and secure. We keep up with the latest trends in cybersecurity and test all our apps to be sure they are well secured. We never risk the quality of our mobile applications, so you can be sure that we take all the necessary measures to make your app safe and successful. If you’re looking to build a mobile app that your users will love, contact us today for more information on our services.