Why Are Brands Adopting a Mobile First Approach to Combating Fraud and Abuse?

“Freemsg: Chase, Did you attempt a wire transfer amount of $7500. Reply Y if recognized, Or NO to stop fraud.”

How would you react if you received this text? Many people would respond without hesitation. But the message above was sent by a criminal impersonating Chase Bank, and it resulted in a 15,000 dollar loss for the recipient. This type of SMS-based fraud, known as smishing, is rising at an alarming rate. In the first half of 2021, smishing attacks increased by 700 percent in the United Kingdom alone. Although financial institutions and utilities are common targets, product brands are increasingly affected too.

Why the dramatic rise? Fraudsters understand the growing importance of mobile devices. Mobile commerce is booming and is expected to surpass 710 billion dollars by 2025. Smartphones now account for 83 percent of social media usage. As brands shift more consumer interactions online and as digital engagement becomes central to most customer journeys, these interactions increasingly begin and end on mobile. Criminals know this, and they are exploiting it.

Mobile devices are now used in more than 60 percent of digital fraud cases.

In a world of smartphones, why target simple text messages? The rise of smishing.

Fraudsters are taking advantage of the explosive growth of mobile commerce. Scam package delivery texts have become the most common form of smishing in the United Kingdom. SMS inboxes are particularly vulnerable because they have far fewer security filters than email platforms. There is little a recipient can do to distinguish a legitimate message from a fraudulent one. Ironically, the simplicity of SMS is what fueled its early popularity and has sustained its use today, even as risks grow.

Simpler still, consider voice calls and messages. The danger of vishing.

Some impersonation tactics are even more aggressive and damaging. Vishing attacks begin with an urgent phone call or recorded message. Criminals often impersonate customer service representatives and pressure victims to trust them. Their goal is to obtain account details, personal information, or device access. Businesses are also at risk. Nearly 70 percent of companies have reported vishing attempts. Fraudsters can appear convincing, especially if they reference fabricated charges or use personal data obtained from past information breaches.

In 2021, more than 25 percent of scam text messages involved package delivery themes.

How are imposters becoming more sophisticated? Apps are the latest targets.

Smishing, vishing, and mobile phishing are only part of the threat. Fraud also spreads through mobile apps. Some apps serve as storefronts for counterfeit products, while others imitate legitimate apps to divert revenue or steal login credentials. Even legitimate platforms pose risks. Social media has become a major marketplace for counterfeits. Ghost Data identified more than 50,000 Instagram accounts promoting fake fashion products.

Fraudsters also use social media to create false brand associations, generate fake endorsements, and lure consumers away from authorized sellers.

Will consumers trade simplicity for security? Not likely.

Mobile devices drive everyday habits, from shopping to social interaction. This creates an ongoing paradox for brands. Consumers are increasingly concerned about fraud, yet they remain reluctant to abandon the speed and simplicity of standard text messages and emails. As brands optimize customer journeys for mobile, they must also adopt a mobile first mindset in brand protection. This includes addressing counterfeit selling on social platforms and apps, and combating impersonation through smishing and vishing.

How should brands address the new frontline of fraud? Think mobile first.

A strong response requires both education and technology. Brands should focus on informing customers and employees about evolving threats while also building verification tools and safeguards into digital experiences. Personalized greetings on apps can offer simple reassurance. Two-factor authentication provides stronger protection, although it can be more burdensome for users.

Even with these measures, fraudsters will continue adapting their attacks. Brands therefore benefit from working with industry specialists who understand mobile-based threats and who can provide comprehensive defensive strategies. By combining user awareness, smart technology, and expert guidance, brands can reduce risk while keeping the customer journey secure and seamless.

Ready to take action? Discover how Crane Authentication can help protect your brand from mobile-based threats.