The financial sector experiences remarkable growth in mobile applications. In 2021, financial apps grew to 574.1 million downloads in the US, nearly 19% more compared to 2020 highlighting the growing demand for mobile financial services (Liftoff, 2022). These apps help users to manage their finances, offering convenience for transferring money, investing, and performing various banking functions on the go. However, the increasing popularity of financial apps has also made them targets for cyber threats. According to a report by SiliconAngle, 1,800 financial apps around the world have been compromised by 29 malware in the span of 12 months (SiliconAngle, 2023). Also, Intertrust’s 2021 report on State of Mobile Finance App Security reveals that 77% of financial apps have at least one series vulnerability that could lead to a data breach (CyberMagazine, 2021).
Cybercriminals exploit vulnerabilities in mobile apps to steal sensitive data stored on devices such as personal data, financial credential and credit card details. In 2022, the well known fintech company Revolut was hacked, resulting in over $20 million being stolen due to a flaw in its US payment system. The vulnerability allowed cyber criminals to exploit a refund process, leading to substantial financial loss over several months. Sensitive data, including names and partial payment card information, was also compromised, highlighting the critical need for enhanced cybersecurity measures in the financial sector (Cybermagazine, 2023). Another recent incident that happened in 2023 is the security hole in the First National Bank (FNB) banking app that exposed the personal details of 88 home loan applicants (Techpoint.africa, 2024). Other incidents that were due to human errors and bad logic flow within the app includes the ICICI Bank incident where thousand of sensitive data of new credit cards have been exposed via their mobile app (Moneylife, 2024). Similarly a mobile banking app from Klarna suffered a security breach that caused widespread customer confusion. Users of the app briefly saw account information of other users instead of their own. Klarna said that a human error caused information to be cached in an unintended way (Bleepingcomputer, 2021).
77% of financial apps have at least one series vulnerability that could lead to a data breach” CyberMagazine, 2021
YOrganisations are not only facing significant financial penalties but also reputational damage as a consequence of data breaches resulting from such attacks. A critical issue contributing to such breaches is the use of vulnerable and outdated components including third-party libraries. Many mobile apps rely on third-party libraries. As new vulnerabilities are discovered, outdated libraries remain unpatched and susceptible to exploitation. Developers may neglect to update these libraries or they dont do regular security audits as they do for the main application code, allowing vulnerabilities to go unnoticed until they are exploited by attackers. Modern apps often use a complex web of dependencies, where one library relies on another. Also developers sometimes incorporate libraries without fully understanding their origin or the quality of the code, which can lead to the inclusion of malicious or poorly-written code that introduces security flaws.
But did you know that this data is also collected by advertising companies and hackers? If they get their hands on it, they can use it to track you down in real life or hack into your online accounts. You might not think of yourself as worthy enough to become a target — but the truth is that all personal details about us are valuable to several companies, even if we don’t think of them.
Other vulnerabilities of apps include code tampering and app repackaging that can be facilitated by a lack of code protection mechanisms. Additionally loopholes in business logic and insecure design can also be exploited and lead to common vulnerabilities like memory leaks. These issues highlight the need for a comprehensive real-time security solutions within the app.
Malloc App Security was built to tackle such vulnerabilities and provide real-time monitoring and protection mechanisms directly within the application runtime environment. It includes a comprehensive set of features to protect mobile apps from security threats, identifying and preventing suspicious activities, anomalies and security threats in real-time. Additionally, it offers a user-friendly web app dashboard to monitor and manage security incidents.
A critical feature of Malloc App Security, especially for banking apps, is the detection of suspicious user behaviour. This feature analyses user interactions, transaction patters, device usage and behavioural biometrics to detect anomalies and trigger alerts for potential threats. This feature combined with detecting changes within the code and its library can tackle vulnerabilities from third-party libraries. Furthermore, Malloc monitors the app’s network to block suspicious connections and it includes app repackaging and tampering protection. Other key features include protection of the app from emulators and it detects if there is any change in app rights and permissions.
As the financial sector experiences significant growth in mobile applications, the importance of prioritising their security is significant. With cybercriminals increasingly targeting these apps, the integration for comprehensive security solutions is essential. Malloc App Security offers a comprehensive suite of features designed to detect, prevent and mitigate security threats in real-time. By implementing solutions like Malloc, companies can safeguard their financial apps ensuring trust and confidence in their services.
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