Spanish banks report 150% spike in fraud

Retailers and service providers should take note of a massive surge in mobile-related financial fraud. New data from Spain shows a 150% spike in fraud originating from stolen devices. While this report focuses on Spanish banks, the tactics used are a warning for global merchants. Criminals are increasingly bypassing security protocols after gaining physical access to smartphones. They are using stolen credentials to apply for instant credit and drain accounts. For businesses offering point-of-sale financing or Buy Now, Pay Later (BNPL) options, this trend increases the risk of 'synthetic' identity theft and fraudulent purchases. If your customer base relies heavily on mobile-wallet transactions or app-based financing applications, your fraud prevention layers must be more robust. It is no longer enough to rely on a simple SMS code for verification. The rise in device-based theft means that if a criminal has the phone, they often have the 'keys to the kingdom.' Merchants should prepare for lenders to tighten their identity verification requirements. This could include more biometric checks or two-factor authentication that doesn't rely solely on the device itself. Staying ahead of these trends helps protect your revenue and ensures that legitimate financing applications aren't flagged as false positives due to heightened lender sensitivity.

Source: Finextra — Lending

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