Bolstering Mobile Banking Security—How To Keep Your Money Safe
Mobile banking offers unmatched convenience, but it also opens the door to sophisticated attacks targeting your accounts, transactions, and sensitive data. According to Kaspersky’s data, mobile devices experienced about 33.8 million attacks in 2023, almost 52% higher than the year before[1].
This alarming trend points to the importance of recognizing the various tactics hackers use to circumvent phone banking security. Understanding these threats is important if you want to protect your financial information and assets from increasingly creative cybercriminals.
This comprehensive guide explores mobile banking security, helping you spot the warning signs and implement effective strategies to keep your bank apps and funds safe.
What Are the Security Issues Involved in Mobile Banking?
Cybercriminals exploit tech flaws and human errors to hack mobile banking apps and accounts. The following table outlines some of the primary threats and security concerns in mobile banking that you should be aware of:
Signs Your Mobile Banking Security May Be Compromised
Mobile banking breaches often leave distinct traces before major damage occurs. Watch for these warning signs that indicate potential compromise:
- Unfamiliar transactions appearing in your account, even small amounts that might be test charges before larger payment fraud attempts
- Being suddenly unable to access your banking app with your regular credentials
- Unexpected notifications about login attempts or password changes you didn't initiate
- Modified account settings, such as changed contact information (email address or phone number), new payee additions, or altered security settings
- Unexpected network connectivity issues on your phone, potentially indicating a SIM swap attack
- Unusual authentication requests or one-time passwords arriving without your action
- Strange device behavior, including excessive battery drain, app crashes, or abnormal data usage patterns, which might indicate a malware infection
- Banking app interface changes or requests for information not previously required during login, like additional authentication steps or security questions
How To Protect Your Banking Apps From Hackers
While banks invest in fraud detection to keep your banking apps safe, the strongest protection starts with your device and habits. Here are some proven security measures that can significantly reduce your risk when using mobile banking:
- Use strong passwords and authentication methods
- Avoid using mobile banking over public Wi-Fi
- Keep your devices and banking apps updated
- Monitor your accounts regularly
- Avoid downloading apps from third-party stores
- Watch out for phishing and smishing signals
- Use virtual cards to protect payment information
Use Strong Passwords and Authentication Methods
Online mobile banking protection starts with a strong password for your account—at least 8–12 characters combining letters, numbers, and symbols. It’s recommended to use different passwords for each financial app rather than reusing credentials, and to change them periodically.
If you’re not comfortable remembering and manually entering each password, you can consider using a trusted password manager—like 1Password, Bitwarden, or LastPass—to generate and store complex passwords securely.
However, using strong passwords might not be enough. To add additional layers of verification, you can enable multi-factor authentication (MFA) wherever available. While SMS-based codes are common, hardware keys or authenticator apps like Google Authenticator might offer better protection in case of SIM-swapping attacks.
Biometric login (fingerprint or facial recognition) may also help prevent unauthorized access if your device is lost or stolen. Combined with a strong password, these methods could make it harder for hackers to breach your account.
Avoid Using Mobile Banking Over Public Wi-Fi
Avoid accessing banking apps outside your home network. Public Wi-Fi is generally less secure and prone to man-in-the-middle attacks, data theft, or malware injections.
If you must use public Wi-Fi, a virtual private network (VPN) can encrypt your internet traffic, making it unreadable to potential attackers even on unsecured networks. However, it’s important that you choose a trusted VPN with strong security and privacy features, such as AES-256 encryption and strict no-log policies.
Keep Your Devices and Banking Apps Updated
Outdated software and apps may contain vulnerabilities that cybercriminals can exploit. Luckily, manufacturers and app developers regularly patch these security issues through software updates.
Installing updates as soon as they become available helps close security gaps that attackers may use to access sensitive financial data. To maintain optimal security, it’s recommended to:
- Enable automatic updates for both your device's operating system and applications
- Manually check for updates regularly if automatic updates aren't enabled
- Install security patches that address newly discovered threats and weaknesses promptly
To update apps on an iPhone, you need to open the App Store, tap the My Account button, scroll down to see available updates, and tap Update next to each app (or Update All for all of them)[2]. If you use Android, you can go to the Google Play Store, tap your profile icon, and go to Manage apps & devices. Next, tap See details under “Updates available,” then tap Update for individual apps (or Update All to update all of them at once)[3].
Monitor Your Accounts Regularly
Frequently reviewing your account balance and transaction history can help you identify unauthorized activity before it escalates.
Many banking apps offer real-time alerts via SMS, email, or push notifications for transactions or other account activity. Enabling these notifications could help you spot suspicious activity (such as card-not-present purchases) immediately and take prompt action.
Besides regularly monitoring transactions, consider reviewing the following account details periodically:
- New payee additions
- Changes to contact information
- Login history or device access logs, if available
- Scheduled payments or automatic transfers
If you notice unfamiliar activity or changes to your account, promptly contacting your bank's fraud department might help limit potential financial loss or data theft.
Avoid Downloading Apps From Third-Party Stores
Cybercriminals may upload fake versions of legitimate banking apps to third-party stores or fraudulent websites. These apps contain malware designed to steal your card numbers or banking credentials, trigger unauthorized transactions, or even allow attackers to take control of your device.
It’s recommended to download banking apps only from your device’s official app store. Official app stores like Google Play and the Apple App Store use strict security checks to minimize the risk of malicious or counterfeit apps. In contrast, third-party app stores often lack these protections, making it much easier for cybercriminals to distribute harmful software.
Watch Out for Phishing and Smishing Signals
Cybercriminals increasingly target mobile banking users through deceptive messages designed to steal credentials and financial information. Phishing attacks via email have expanded to include SMS- and phone-based phishing, with 82% of phishing sites now specifically targeting mobile devices (known as “mishing”)[4].
Recognizing these attacks requires looking out for several key warning signs:
- Urgent language prompting immediate action, such as messages claiming suspicious account activity that requires verification "immediately"
- Messages that appear to come from banks or financial institutions requesting verification of bank account details or alerting you to unauthorized transactions
- Shortened URLs that hide the actual destination website, making it difficult to verify legitimacy before clicking
- Slightly altered domain names in links (like "amaz0n.com" or “amazoninfo.com” instead of "amazon.com")
When receiving suspicious messages, verify them independently by contacting your bank through official channels rather than responding directly. Remember that legitimate banks never request sensitive information like passwords or complete card numbers via text messages or emails.
Use Virtual Cards To Protect Payment Information
Despite strong passwords, secure networks, and regular monitoring, traditional security measures still leave space for vulnerabilities in mobile banking. Payment methods like netbanking and debit or credit cards expose your actual payment details with every transaction, creating multiple points of access to your data.
Virtual cards address this fundamental weakness by creating a layer of separation between your actual financial information and the merchants you transact with. They come with randomly generated 16-digit card numbers that hide your real payment card details during transactions. Even if a hacker steals your payment information or a merchant experiences a data breach, only the virtual card number is exposed, not your actual banking details.
If you want a seamless way to integrate virtual cards into your day-to-day payment routine, Privacy offers a comprehensive solution. It lets you generate virtual cards with advanced customization options and robust card control features, giving you greater control over your transactions while helping reduce exposure to fraud.
Protect Online Transactions With Privacy Virtual Cards
After linking your debit card or bank account with your Privacy account, you can generate virtual cards that work with most online merchants and websites that accept U.S. Visa® and Mastercard® payments.
As a BBB®-accredited and PCI-DSS-compliant company trusted by over 250,000 Americans, Privacy employs bank-grade security measures such as:
- Data encryption—Privacy uses 256-bit AES encryption, the same standard used by military agencies, to safeguard your stored data.
- Two-factor authentication (2FA)—Privacy supports 2FA via email, SMS, and authenticator apps to add a second verification layer for your account.
- Transaction alerts—You receive real-time notifications whenever your virtual card is used or declined, allowing you to detect potentially suspicious transactions promptly.
- Protected servers—Your information is stored in firewalled servers that are updated regularly.
- Third-party audits—Privacy conducts frequent third-party audits to comply with the highest security standards.
Privacy Card Types and Features
Privacy offers three types of cards that protect your finances in different ways:
- Single-Use—These cards become inactive moments after completing the first transaction, making them useless to those who may attempt to steal them. They're ideal for one-time purchases on websites you’re not familiar with.
- Merchant-Locked—These cards are "locked" to the first merchant you use them with. If a potential hacker attempts to use the card elsewhere, it will be declined. Merchant-Locked Cards are perfect for recurring payments such as utility bills and monthly subscriptions.
- Category-Locked—Rather than "locking" to one vendor, these cards can only be used for one merchant category, such as travel, utilities, or groceries. They're great for budgeting and managing expenses in a particular spending category.
Privacy lets you set spending limits on each virtual card, and any charges exceeding your preset limit are automatically blocked. You can also pause or close your Privacy Cards anytime without affecting the funding source, helping protect you from unauthorized transactions or unwanted charges after canceling a subscription.
Additional Convenience Features
Other Privacy features that can enhance your online shopping experience include:
- Browser extension—The Privacy Browser Extension, available for Chrome, Firefox, Edge, Safari, and Safari for iOS, lets you store and autofill virtual card information directly from your browser. It saves you from having to remember and manually enter card numbers at checkout for every purchase.
- Mobile app—The Privacy App for iOS and Android lets you create, track, and manage virtual cards on the go.
- 1Password integration—You can leverage the 1Password browser extension to manage your virtual cards and passwords from a single dashboard.
How To Get Started With Privacy Cards
You can easily get a Privacy Virtual Card by following these simple steps:
- Visit the signup page and create your account
- Enter the required KYC information
- Connect a funding source (bank account or debit card) with your Privacy account
- Request and create your first virtual card
Privacy offers four monthly plans that you can check out below:
Resources
[1] Kaspersky. https://www.kaspersky.com/about/press-releases/attacks-on-mobile-devices-significantly-increase-in-2023, sourced April 27, 2025
[2] Apple. https://support.apple.com/en-us/102629, sourced April 27, 2025
[3] Google. https://support.google.com/googleplay/answer/113412?hl=en. sourced April 27, 2025
[4] Zimperium. https://lp.zimperium.com/hubfs/MAPS_MTD/REPORT/GEN/Global%20Mobile%20Threat%20Report%202024%20FINAL%20(1).pdf, sourced April 27, 2025
