• Chris Roeckl, Chief Product Officer at Appdome


• 29.05.2024 02:15 pm
#Cybersecurity #RealTimeDefence

The digital age has brought unparalleled convenience to the financial services industry, catalysing innovations that have reshaped how we interact with money and financial institutions. In fact, according to research from CompareBanks, nearly 70% of British people with bank accounts use mobile banking app features to manage their accounts. Why? Because it’s convenient and almost always accessible – given that 92% of UK mobile users now own a smartphone. Yet, this digital transformation has been shadowed by an escalating threat that preys not on the technology but on human trust: social engineering attacks. 

The dark art of manipulation

Social engineering, a critical cybersecurity threat that manipulates individuals into compromising security measures or revealing sensitive information, is now a significant digital risk to all consumers, banks (or financial institutions or whatever is best) and mobile brands. It accounts for 98% of cyberattacks, challenging the integrity of consumer trust and security in our increasingly digital society. Particularly within the financial services sector, these attacks deftly exploit the trust between mobile brands and their clients. Malicious actors deceive users into actions like divulging personal information or unintentionally installing harmful software, utilising various tactics to achieve their deceptive ends.

The impact of falling victim to these schemes is extensive and varied. They lead to immediate financial loss, unauthorised access, identity theft, and emotional turmoil, thereby damaging the foundational trust between customers and financial brands. This erosion of trust can have lasting repercussions on a brand's reputation.

Traditionally, the financial sector's response to these threats has been largely reactive, focusing on mitigating damage post-attack. This approach has proven insufficient, exposing institutions and their clients to continuous and potentially escalating threats. There's a pressing need for a more proactive stance in cybersecurity measures to prevent such attacks before they occur.

The game is changing, and cyber criminals are put on notice

For the first time in history, solutions have been developed that enable security teams to take proactive measures instead of reactive measures against social engineering attacks on mobile applications. These solutions enable financial services mobile app developers and brands to incorporate in-app defences directly into their Android and iOS applications. Designed to combat a broad spectrum of social engineering techniques, these solutions operate in real-time to detect, block, and intervene during potential attack attempts, aiming to safeguard a vast user base from fraud and misuse.

The essence of combating social engineering lies in disrupting the attacker's engagement with the user. Traditionally, once contact is made, users are vulnerable to deception—and financial institutes are open to risk. However, the innovative approach of new solutions seeks to intervene proactively during these critical moments, delivering timely information to users to prevent them from falling victim to scams and, in turn, helping financial brands protect their reputation.

It’s more than cybersecurity, it’s a moral obligation

For the financial services industry, embracing real-time defence solutions against social engineering is more than a strategic imperative; it is a moral obligation as institutions entrusted with the stewardship of people's financial wellbeing, banks, and financial services must adopt advanced cybersecurity measures. In doing so, they protect their customers and reinforce the foundation of trust that underpins the digital financial ecosystem.

In conclusion, the introduction of real-time defences against social engineering represents a pivotal development in the evolution of cybersecurity within the financial services industry. As we navigate the challenges and opportunities of the digital age, innovations that break the cycle of social engineering against mobile end users are beacons of hope, illuminating the path toward a more secure and trustworthy financial future.