In a Public Service Announcement (PSA) issued today, The FBI warned that the increased use of mobile banking apps could lead to more user exploitation. The PSA states, “As the public increases its use of mobile banking apps, partially due to increased time at home, the FBI anticipates cyber actors will exploit these platforms.
Americans are increasingly using their mobile devices to conduct banking activities such as cashing checks and transferring funds. US financial technology providers estimate more than 75 percent of Americans used mobile banking in some form in 2019.
Studies of US financial data indicate a 50 percent surge in mobile banking since the beginning of 2020. Additionally, studies indicate 36 percent of Americans plan to use mobile tools to conduct banking activities, and 20 percent plan to visit branch locations less often. With city, state, and local governments urging or mandating social distancing, Americans have become more willing to use mobile banking as an alternative to physically visiting branch locations. The FBI expects cyber actors to attempt to exploit new mobile banking customers using a variety of techniques, including app-based banking trojans and fake banking apps.
App-Based Banking Trojans
The FBI advises the public to be cautious when downloading apps on smartphones and tablets, as some could be concealing malicious intent. Cyber actors target banking information using banking trojans, which are malicious programs that disguise themselves as other apps, such as games or tools. When the user launches a legitimate banking app, it triggers the previously downloaded trojan that has been lying dormant on their device. The trojan creates a false version of the bank’s login page and overlays it on top of the legitimate app. Once the user enters their credentials into the false login page, the trojan passes the user to the real banking app login page so they do not realize they have been compromised.
Fake Banking Apps
Actors also create fraudulent apps designed to impersonate the real apps of major financial institutions, with the intent of tricking users into entering their login credentials. These apps provide an error message after the attempted login and will use smartphone permission requests to obtain and bypass security codes texted to users. US security research organizations report that in 2018, nearly 65,000 fake apps were detected on major app stores, making this one of the fastest-growing sectors of smartphone-based fraud.”
Security Industry Leader Comments
Asked to comment on the FBI PSA, security industry leaders offer the following insights.
Josh Bohls, Founder, Inkscreen
“We witnessed a rise in banking scams related to the SBA programs after COVID-19 so it is not surprising that new and inexperienced mobile banking customers are also now a target. By now all of the major banks offer robust mobile banking apps with security and fraud review teams, and many of the smaller community and regional banks have followed suit with the help of companies such as Q2. Generally speaking, the mobile banking apps are safer than their companion websites, and the rule of thumb is to never click a link from an email or text message related to your bank accounts but instead go directly to the bank’s app or website and check there for a message or alert.”
James McQuiggan, Security Awareness Advocate, KnowBe4
“Why do criminals rob banks? “Because that’s where the money is.” This popular response originates from Willie Sutton, a bank robber from the 1920s. This message has carried on through the years and is still a reason why cyber criminals target banking apps, banking credentials, and other personal information. It is not unlikely that with the recent pandemic and bank lobbies being closed to reduce the risk of spreading, that people have switched to using banking apps to access their accounts.
With the convenience of using a mobile bank application comes the need to increase the security when accessing it. Users should implement multi-factor authentication to authenticate themselves to their bank accounts. If the bank does not offer this feature, it’s highly recommended not to use the banking app to reduce the risk of having your account compromised and be subject to any financial theft.”
TIPS TO PROTECT YOU AND YOUR ORGANIZATION
The PSA offered the following advice to help users steer clear of mobile banking app scams.
Obtain Apps from Trusted Sources
Private sector companies manage app stores for smartphones and actively vet these apps for malicious content. Additionally, most major US banks will provide a link to their mobile app on their website. The FBI recommends only obtaining smartphone apps from trusted sources like official app stores or directly from bank websites.
Use Two-Factor Authentication
Since 2016, surveys of application and website users have identified that a majority of users do not enable two-factor authentication when prompted. These users cite inconvenience as the major reason to avoid the use of this technology. Cybersecurity experts have stressed that two-factor authentication is a highly effective tool to secure accounts against compromise, and enabling any form of two-factor authentication will be to the user’s advantage
Do:
- Enable two-factor or multi-factor authentication on devices and accounts to protect them from malicious compromise.
- Use strong two-factor authentication if possible via biometrics, hardware tokens, or authentication apps.
- Use multiple types of authentication for accounts if possible. Layering different authentication standards is a stronger security option
- Monitor where your Personal Identifiable Information (PII) is stored and only share the most necessary information with financial institutions.
Don’t:
- Click links in e-mails or text messages; ensure these messages come from the financial institution by double-checking e-mail details. Many criminals use legitimate-looking messages to trick users into giving up login details.
- Give two-factor passcodes to anyone over the phone or via text. Financial institutions will not ask you for these codes over the phone.
Use Strong Passwords and Good Password Security
Cyber actors regularly exploit users who reuse passwords or use common or insecure passwords. The FBI recommends creating strong, unique passwords to mitigate these attacks. The National Institute of Standards and Technology’s most recent guidance encourages users to make passwords or passphrases that are 15 characters or longer.
Do:
- Use passwords that contain upper case letters, lower case letters, and symbols.
- Use a minimum of eight characters per password.
- Create unique passwords for banking apps.
- Use a password manager or password management service.
Don’t:
- Use common passwords or phrases, such as “Password1!” or “123456.”
- Reuse the same passwords for multiple accounts.
- Store passwords in written form or in an insecure phone app like a notepad.
- Give your password to anyone. Financial institutions will not ask you for this information over the phone or text message.
If a Banking App Appears Suspicious, Call the Bank
If you encounter an app that appears suspicious, exercise caution and contact that financial institution. Major financial institutions may ask for a banking PIN number, but will never ask for your username and password over the phone. Check your bank’s policies regarding online and app account security. If the phone call seems suspicious, hang up and call the bank back at the customer service number posted on their website.

Steven Bowcut is an award-winning journalist covering cyber and physical security. He is an editor and writer for Brilliance Security Magazine as well as other security and non-security online publications. Follow and connect with Steve on Twitter, Instagram, and LinkedIn.