Nuke From Orbit, a UK fintech startup, has unveiled findings from its latest research report, ‘Evolving smartphone usage and the growing threat to consumers’.
The report sheds light on a concerning trend in smartphone thefts, indicating that in 62% of cases in the UK, the repercussions extend far beyond the initial loss of the device.
Digital theft victims
According to the research, not only were respondents' social media and email accounts accessed, but one in four individuals also fell victim to digital wallet theft, resulting in monetary losses.
Alarmingly, the study reveals that one in five respondents experienced compromised personal bank accounts through unauthorized access via mobile banking apps.
Mobile safety risks
The alarming findings come amid the evolving boom in smartphone usage and the growing identity threat
The alarming findings come amid the evolving boom in smartphone usage and the growing identity threat that users face.
Although smartphones were created to simplify life with their many functions, this convenience has also made consumers more vulnerable to risk despite increased security features on devices and apps.
Other key findings
- 78% of the respondents use their smartphones for mobile banking, 85% for accessing email, 71% for managing social media, and 51% for a digital wallet, indicating that cybercriminals can easily access their data from a single mobile device.
- However, nearly half (45%) are in the habit of using the same PIN to gain access to the phone and multiple apps, services, and bank cards.
- 58% are aware that bank cards stored in a digital phone wallet can be used with your smartphone PIN to bypass biometrics.
- Three in four (74%) showed interest in a service that enables them to cancel bank cards, and block access to banking apps, SIM cards, email, social media, and more, all in a single activation.
James O’Sullivan, CEO and founder of Nuke From Orbit commented, “Biometrics were introduced to make smartphones more secure because the frequency with which you need to input a PIN is greatly reduced, but our research shows this has led to some complacency."
Instant data security
"Criminals are returning to old-school shoulder surfing tactics, that made ATMs a nightmare to access the phones they then steal to commit secondary crimes."
"As an industry, we need to provide smartphone users with the highest level of protection by harnessing technology for instant data security when their devices are compromised.”
Product Security Act
Consumer technology products meet mandatory security requirements to protect against cyberattacks
A legislation that will contribute to the fight against such threats is The UK Product Security and Telecommunications Infrastructure (Product Security) Act, which will come into effect on the 29th of April.
The Act will ensure that consumer technology products meet mandatory security requirements to protect against cyberattacks.
Data protection
Businesses including banks will be accountable for protecting customer data as the regulation mandates them to set safety measures such as minimum default password requirements and providing information on reporting security issues.
With so much interconnectivity, and even authenticator apps and one-time passcodes utilising the same device, smartphones are at the heart of the challenge this legislation is designed to tackle.
Protecting the digital identities
“The Act is relevant for all businesses in the mobile ecosystem, including banks, fintechs, and online service providers. Service providers are responsible for ensuring they do everything possible to protect consumers when the worst happens."
"Our research suggests that currently, they are not doing enough. Nuke From Orbit is on a mission to support such service providers in protecting the digital identities of individuals and putting them back in control of their data swiftly when their smartphones are stolen.”
Addition protection
Lawrence Brown, Senior Insights Manager at KAM, the research company responsible for conducting the research, added, “Many security measures are preventative, which alongside good user behaviors, decrease the dangers [to consumers] and are, of course, encouraged."
"However, when reactive measures such as tracking and remote locking software can be disabled after the theft, there is a vulnerability gap that requires additional protection.”
Digital panic button
Nuke From Orbit offers a unique digital panic button, allowing individuals to block access to various services and accounts all at once if their smartphone is stolen.
This world’s first solution fixes a significant vulnerability and adds a higher level of data protection and privacy in the mobile security market.
Understand how converged physical and cybersecurity systems can scale protection.
