© 2015 IBM Corporation

The Cyberciminal Approach to Mobile Fraud: Now They’re Getting SeriousSSA-1721

Ori Bach

Sr. Fraud Prevention Strategist

Today’s Agenda

• Different Perspectives

• Current State of Mobile Based Financial Threats

• Mobile Security Challenge

• Looking at Future Threats

Different Perspectives

The User’s Perspective

3

Are you saying that I can do my banking while on the go?

Sign me up!!!

Mobile Banking Services Are a Competitive Advantage

Mobile banking is the

most important deciding

factor when switching

banks (32%)

More important than fees

(24%) or branch location (21%)

or services (21%)… a survey

of mobile banking customers in

the U.S. 1

Mobile banking channel

development is the #1

technology priority of

N.A. retail banks (2013)

#1 Channel

The mobile payments

market will eventually

eclipse $1 trillion by 2017

$1tn

43%of 18-20 year olds

have used a

mobile banking

app in the past

12 months

29%Cash-based retail

payments in the U.S. have

fallen from 36% in 2002 to

29% in 2012

$

Of customers won't mobile bank because of security fears

19%

90%Of mobile banking app users use the app to check account balances or recent transactions

Security is a Growing Concern

5

Source: Consumers and Mobile Financial Services 2013, Federal Reserve

Board

The Financial Services Industry Perspective

6

My customers can interact with me while on the go?

Sign me up!!!

• mBanking Usage Leads mPaymentsSource: US Federal Reserve March , 2014

Mobile Banking and Payment Growth

• Mobile Payments – Global annual shipments of NFC enabled phones are set to rise from

275million units in 2013 to 1.2billion units in 2018.Source: NFC World, February 2014

– By 2017, the total value of global offline transactions facilitated by mobile

devices will reach about $1.5 trillion, up from $120 billion in 2012Source: Business Insider, June 2013

Source: Monitise, The Mobile Money Landscape, Vol. 1 2014

Security Is Front and Center

The Cybercriminal Perspective

10

Source: Consumers and Mobile Financial Services 2013, Federal Reserve

Board

Are you saying that I can do my banking while on the go?

Sign me up!!!

The Criminal’s Perspective: Game On!

11

The Majority of Financial Apps Have Been Hacked

• Majority of top 100 paid Android

and iOS Apps are available as

hacked versions on third-party

sites

• …as are many financial service,

retail, and healthcare apps

• (State of Mobile App Security,

Arxan, 2015)

• "Chinese App Store Offers

Pirated iOS Apps Without the

Need to Jailbreak” (Extreme Tech,

2013)

http://www-03.ibm.com/software/products/en/arxan-application-protection

Mobile Attacks

Server-side Device ID is not effective for mobile devices

Mobile devices share many identical attributes

Mobile devices have the same attributes: OS, browser, fonts etc..

Cybercriminals can easily trick traditional device ID systems

Cybercriminals Love Mobile Anonymity

14

Account takeover via a criminal mobile device is on the rise

15

Old “Friends” Crash the Party

Mobile Ransomware

Mobile Phishing / SMishing

19

SMS Spamming

20

Other Attack Vectors

21

Fake Apps

23

Over 80,000 users have

granted the apps permission

to run on their browser,

despite the warning the games

will receive full access to a

player’s web activity

The Challenge: Vulnerable Devices

24

The Ease of Getting Infected Malware to the Official Stores

25

Overlay Mobile Attack

Overlay Mobile Attack

A Mobile Malware Underground is Developing

29

Mobile Banking Fraud

31

Underground Discussions

Underground Services

32

User Name + Password

OTP SMS

Credentials

OTP SMS

TOR C&C

App Latching (Bundeling)

Source: Dancho Danchev

The Mobile Security Challenge

Oldschool Mobile Security

36

37

Security Solution Silos

Apple’s Walled Garden

38

Cybercriminals Are Finding Ways Into the Walled Garden

39

The Challenge: Vulnerable Devices

40

Mobile AVs Started Popping Up

41

The Criminal’s Perspective: We Know This Game!

42

Root Detection Evasion

Future Threats

Mobile Threats – New Vectors

We have seen

Classic threats migrate to mobile: Phishing, Ransomware,

Overlay

Mobile specific threats such as fake Apps

We are bound to see

Mobile specific exploit kits

Bundling frameworks and services (perhaps automated)

Device takeover malware for mobile

NFC, ApplePay – new targets

New Tech – New Challenges

• New technology challenges:

• Wearable tech

• IoT (Internet of Things)

• Will ransomware be applied to IoT?

• A car lockdown?

• A house blackout?

• A pacemaker threat?

Users Will Always Make Mistakes

Remember – Security is in YOUR Hands

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