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How Fradulent Android Apps are a Threat to Your Data and Finances

RBL Bank Dec 02, 2024

In a world where most of everyday tasks are shifting to digital apps, one needs to beware of the serious threats some of them might pose under the guise of offering convenience. As fraudulent android apps are on the rise, unsuspecting phone users are easily trapped by mimicking genuine platforms & offering reward redemptions or credit card benefits. While these offers might sound tempting, they are dangerous malwares designed to steal personal and financial information. In serious cases, it also leads to unauthorised transactions and emotional stress.

In this article, we will dive deep into how these malwares operate and most importantly, how you can protect yourself from falling victim to them.

How are Fraudulent Android Apps Different From Genuine Ones?

Fraudulent apps imitate genuine platforms to lure users with enticing offers like reward point redemptions or instant credit card approvals. However, these apps often conceal malware programmed to collect sensitive information.

Recent findings by the National Cybercrime Threat Analytics Unit (NCTAU) reveal alarming tactics employed by such apps. They can intercept calls, access SMS data, and steal personal details like PAN numbers, Aadhaar information, and banking credentials.

How Do These Malicious Apps Operate?

Understanding the tactics of these apps to deceive users will make you better prepared to protect yourself. Take a look at their modus operandi:

1. False Promises and Lures

These apps often make attractive offers to trick users into downloading them. Common lures include reward point redemptions and quick credit card approvals.

Once downloaded, the apps appear legitimate and prompt users to enter sensitive personal information, such as credit card details, in exchange for these rewards or benefits.

2. Phishing Techniques

Fraudulent apps often mimic the interface and design of legitimate services, making it hard to distinguish between the two. They use these phishing techniques to gain the user's trust and extract personal information without suspicion.

These tactics include:

  • Replicating official logos, branding, and app features.
  • Sending deceptive messages designed to appear urgent, such as "Your account is at risk! Click here to protect it."

3. Targeted Data Collection

Malicious apps actively seek sensitive data. They may ask users to upload documents like Aadhaar or PAN cards under the guise of verification. This increases the risk of identity theft and fraud.

Commonly requested data includes:

  • Full name, date of birth, and email address
  • PAN and Aadhaar numbers
  • Credit card details (number, CVV, expiry date, PIN)

4. Excessive Permissions and Data Harvesting

Upon installation, these apps request excessive permissions that seem unnecessary for the app’s functionality. This includes access to:

  • SMS messages and call logs
  • Contacts and location data
  • Camera and microphone

When you grant these permissions, the app can harvest sensitive data, including OTP (One-Time Passwords), PIN numbers, and more, which is exploited for financial gain.

5. Hijacking Phone Features

Once installed, malicious apps can hijack essential features of your phone, such as:

  • Changing default SMS apps to intercept messages, including OTPs used for banking or financial transactions.
  • Call forwarding settings, which reroute calls to a different number, allowing fraudsters to listen to your conversations or control communications.

6. Data Exfiltration

After gathering personal and financial information, these apps send the data to attackers via various methods, such as:

  • SMS or Telegram bots
  • Email or other messaging platforms

This process, known as data exfiltration, enables cybercriminals to misuse the stolen data for fraudulent activities, such as unauthorised financial transactions or identity theft.

7. Malicious Behaviour Post-Installation

Once installed, these apps may cause noticeable disruptions, such as:

  • Slowing down your device due to hidden background processes.
  • Displaying unwanted pop-ups or ads, even when the app is not actively in use.
  • Sending frequent notifications designed to create urgency, urging users to act immediately (e.g., “Limited-time offer – claim your reward now!”).

How to Identify Fraudulent Apps

While these apps can be deceptive, there are warning signs you can watch out for to safeguard yourself:

  • Excessive Permissions: Be cautious if an app requests access to sensitive features like SMS, call logs, or banking details.
  • Unverified Sources: Avoid downloading apps from third-party stores or links shared via SMS or email.
  • Too Good to Be True Offers: Apps promising unrealistic rewards or benefits are often red flags.
  • Changes to Phone Settings: Uninstall any app that alters your default SMS or call settings.

Simple Steps to Protect Yourself

Stay proactive with these practical tips to safeguard your data and finances:

  • Download Apps Only from Official Sources: Use trusted platforms like the Google Play Store and verify the developer's credentials.
  • Review App Permissions: Grant permissions only when they are essential for the app’s functionality. Deny access to unnecessary features.
  • Enable Two-Factor Authentication: Add an extra layer of security to your financial accounts by activating two-factor authentication.
  • Keep Your Device Secure with Regular Updates: Regularly updating your phone’s operating system and apps is critical to the safety of personal information stored on your device. These updates often include security patches that address new vulnerabilities that malwares might exploit. Ignoring updates leaves your device open to cyber threats.
  • Regularly Monitor Bank Statements: Check your transactions frequently and report any unauthorised activity to your bank immediately.
  • Install Reliable Antivirus Software: Install reliable antivirus software and update your phone regularly to protect against known vulnerabilities.

What Should You Do if You’ve Been Targeted?

If you suspect you’ve interacted with a malicious app:

  • Uninstall the App: Remove it from your device immediately.
  • Change Passwords: Update passwords for all linked accounts. Prioritise banking and email credentials.
  • Contact Your Bank: Notify your bank and request a freeze on your accounts if suspicious transactions occur.
  • Report to Authorities: File a complaint through the National Cybercrime Reporting Portal at www.cybercrime.gov.in or contact the national cybercrime helpline (1930). You can also report the issue via the Cyber Crime Cell through the SacharSathi Portal, which offers the case tracking feature.
National Cybercrime Reporting Portal
sancharsaathi

Conclusion

In a world where digital interactions are a way of life, staying vigilant is an essential form of defence against cyber threats. Fraudsters are evolving, but so should your awareness. Before downloading any app, always ask yourself, “Is this source trustworthy?”

Your safety is in your hands—be informed, be alert, and always verify for authenticity. Share this blog to spread awareness and help others stay protected from fraudulent apps.

Click here to learn more about various types of fraud and how to protect yourself.

Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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