APP fraud happens when fraudsters deceive consumers or individuals into sending a payment under false pretenses to a bank account controlled by the fraudster. Real-time payment schemes are irrevocable, so victims cannot reverse a payment once sent.

Prevention is the only solution. Let’s discuss different types of authorized push payment fraud and how they can be prevented with mobile app testing.

Five Types of Mobile App Fraud to Watch Out For

Fraudsters are constantly developing increasingly creative ways to attack and defraud mobile apps. Some of the most problematic include the following:

1 Authorized push payment fraud 

APP fraud happens when fraudsters deceive consumers or individuals at a business to send them a payment under false pretenses to a bank account controlled by the fraudster. As real-time payment schemes are irrevocable, the victims cannot reverse a payment once they realize they have been conned.

2. Payment/purchase and misdirection fraud

3. Impersonation fraud

4. Automation fraud

Automation fraud uses software to carry out attacks on a massive scale, such as in a gigantic series of mobile emulation scams uncovered by IBM in 2020. In these scams, thieves used mobile device emulators to spoof devices, entered stolen user login data, and initiated fraudulent money orders, siphoning millions from compromised accounts.

5. Referral/benefit fraud

The Entire User Journey is Ripe for Fraud

Are banks in the UK doing enough to support consumers from APP scams, unauthorized debit and credit, and other payment card fraud? I don’t think so. When I fell victim to an APP scam, I contacted my bank immediately. All I got was a lack of interest and a bombardment of documents to complete alongside a million and one questions. I was so overwhelmed with all the documentation. I concluded it was not worth the hassle.

I felt like my bank was unsympathetic to my situation. Guess what? I am no longer with that bank. Protecting your user’s financial and personal information is a huge responsibility that hinges on brand loyalty. With so many APP scams and fraudulent transactions, the only solution is prevention. 

Prevent Authorized Push Payment Fraud with Payments Testing

Prevention is the only way to tackle APP fraud and payment issues. Here are four ways to consider:

  • MFA/2FA – Multi-factor authentication (MFA) and two-factor authentication (2FA) help ensure the user is who they claim to be.
  • OTP verification – One-time passwords are sent to users’ phones to verify transactions, reducing the risk of fraud.
  • Clear payment process – Users need to understand what they are paying for and how much they are paying, and they need to trust the sender
  • Payment gateway testingPayment gateway testing mimics each payment process step to verify that connections, transactions, and communication paths are working. Testers uncover issues that impact a seamless transaction and user experience. Plus, solid testing identifies vulnerabilities, heading off attacks before they happen.
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Preventing APP fraud with mobile payment testing is critical to protecting your business and customers. By implementing prevention strategies and proper payment gateway testing, you can prevent fraud and maintain trust.

Respected sales professional with over 20 plus years of progressive experience in building strategic partnerships generating new business growth while maintaining existing clientele.