Bank customers are being left dangerously exposed to scammers because of weak security in some major banking apps, consumer group Which? warns.
Mobile banking apps allow users to make payments with their phone. But fraudsters are exploiting weaknesses in their security to steal from victims.
In tests Lloyds, Halifax, American Express and Barclays had the worst security of all banks, Which? says.
As much as £15.7 million was reported lost to mobile banking fraud in the first half of 2022, according to UK Finance.
Risk: If a phone is stolen criminals can view security code messages, helping them to access victims’ accounts
Banks often send users codes via email or text which allow them to reset their login details or add a new payee.
But if a phone is stolen criminals can view these messages, helping them to access victims’ accounts.
Which? is calling for banks to stop relying on text messages to send users sensitive information.
Jenny Ross, of the consumer group, says: ‘A lack of strong security protections in some banks’ mobile apps is a huge concern, and could leave many more consumers at risk of being defrauded.’
Nick White, 46, from Somerset (whose name has been changed), lost £73,000 after his mobile phone was stolen in a London pub.
Fraudsters transferred £15,000 from his personal account and £58,000 from his business after gaining access to his Barclays mobile banking app.
Nick has been refunded the £15,000 from his personal account and his insurer refunded him for money lost on the business account.
Barclays says it is constantly testing its app to offer customers the highest level of protection.
