Mobile banking presents significant risk to banks, especially as cyberattacks grow increasingly sophisticated with the rise of artificial intelligence (AI). Without a robust security plan, both employee devices and mobile banking customers are vulnerable to cyber threats targeting the vast amount of sensitive data held on devices.
The Unique Risk of Mobile Devices
- Phones often connect to public or shared wireless local area networks (WLANs), which are not always secure.
- Banking data attacks on smartphones tripled in 2024, a Kaspersky report found.
- The average cost of a data breach is $4.4 million, according to IBM research.
With growing threats, it’s essential to understand the risks involved with mobile devices and how your institution can remain secure without compromising privacy.
The Importance of Mobile Device Security in Banking
In the banking industry, mobile devices are increasingly critical access points to financial systems, customer data and transaction workflows. Cybercriminals recognize this expanded attack surface and target mobile endpoints as a lower-friction alternative to breaching hardened core banking infrastructure.
Mobile-based attacks pose heightened risk in banking because they often exploit human behavior rather than technical vulnerabilities alone. Phishing and smishing campaigns that impersonate institutions, executives or trusted service providers are designed to capture credentials, bypass authentication controls, or install malware capable of intercepting one-time passcodes. When successful, these attacks can undermine multi-factor authentication, facilitate real-time fraud and erode customer trust.
Furthermore, numerous apps and services track customers’ location data, often running in the background, to compile detailed profiles of their daily habits. Not only that, but outdated apps or operating system (OS) versions may contain security flaws and vulnerabilities that hackers exploit to gain unauthorized access.
How AI Accelerates Cybercrime
While AI enables smarter fraud detection and personalized customer experiences, it also empowers cybercriminals to craft highly realistic threats. With the advent of advanced AI tools, malicious actors no longer require significant technical expertise — these technologies automate much of the work, lowering the barrier to commit cybercrime.
By analyzing and learning from user interactions — such as browsing habits, app usage and communication patterns — AI-driven attacks can convincingly mimic legitimate activity, making phishing attempts and scams far more difficult to spot. This growing accessibility, combined with the increasing sophistication of AI-generated threats, demonstrates the urgency for awareness, as these attacks exploit trusted behaviors to compromise sensitive financial data.
As financial institutions continue to expand digital footprints and service offerings, the line between personal and professional device usage becomes increasingly blurred, amplifying exposure to cybercriminals.
8 Practical Ways To Secure Your Institution’s Mobile Device Capabilities
1. Enforce Strong Device Security Standards
Establish baseline security requirements for all institution‑issued and approved mobile devices, including strong passcodes/PINs, full‑device encryption and biometric authentication. These controls should be centrally enforced through mobile device management (MDM) or enterprise mobility management (EMM) platforms to prevent unauthorized access to internal systems, applications and sensitive financial data.
2. Restrict Application Sources and Apply App‑level Protections
Limit application installation on managed devices to approved app stores and institution‑vetted applications only. Implement application allowlisting and leverage mobile application management (MAM) controls to enforce app‑specific security policies, such as preventing data sharing with unmanaged apps, blocking third‑party keyboards and restricting data export from trusted banking or enterprise applications.
3. Leverage Containerization To Protect Institutional Data
Use secure containerization to logically separate institution data from personal data on mobile devices. App containers should prevent copying, pasting, saving or backing up institutional data outside the managed environment, ensuring sensitive information cannot be transferred to personal apps, cloud storage or unapproved services — even on bring‑your‑own‑device (BYOD) endpoints.
4. Control Screenshots, Screen Recording and Data Exfiltration
Enforce app‑level restrictions to disable screenshots, screen recording and screen sharing for applications that handle sensitive information. These controls reduce the risk of intentional or inadvertent data leakage and help protect confidential internal data from being captured and redistributed outside controlled channels.
5. Secure Network Connectivity and Remote Access
Require institution‑approved VPNs, zero‑trust network access (ZTNA) or encrypted tunnels for mobile access to internal systems. Combine network controls with app‑level network restrictions to prevent managed applications from transmitting data over unsecured or public networks without proper encryption and inspection.
6. Maintain Timely Patch, Configuration and Compliance Enforcement
Mandate timely operating system and application updates across all managed devices and enforce compliance checks before granting access to internal resources. Devices that are jailbroken, rooted or running unsupported OS versions should be automatically restricted or quarantined, as these configurations undermine containerization and other application security controls.
7. Strengthen Authentication, Transaction and User Controls
Require multi‑factor authentication (MFA) for access to internal systems and high‑risk applications, favoring app‑based or hardware‑backed authentication methods where available. Pair MFA with app‑level policies such as session timeouts, inactivity locks, conditional access and dual authorization for sensitive transactions to reduce the impact of a compromised device or credential.
8. Prioritize Workforce Awareness and Governance
As mobile access becomes deeply embedded in daily operations, institutions should maintain strong governance over device usage, application access and data handling. Ongoing employee education should reinforce secure mobile behavior, awareness of social engineering threats, and proper handling of institution‑managed apps and data. Periodic reviews of MDM/MAM configurations and risk assessments help ensure controls remain aligned with regulatory expectations and evolving threat activity.
Regulatory Compliance Increases Institutional Requirements
Regulatory scrutiny further elevates the importance of mobile device security within banking environments. Financial institutions are expected to safeguard customer data, maintain transaction integrity and demonstrate strong risk management practices across all access channels — including mobile endpoints.
Weak mobile security controls can lead to:
- Financial losses
- Regulatory penalties
- Legal exposure
- Reputational damage
As a result, mobile security in financial institutions must be treated as a core component of enterprise risk management, rather than an afterthought or end-user responsibility alone. Specific regulations and compliance guidelines include:
- The Gramm-Leach-Bliley Act (GLBA), which outlines strict requirements for financial institutions to protect customer data and systems, including mobile banking app protections.
- The Federal Financial Institutions Examinations Council (FFIEC) guidelines for online banking, which provides a framework for risk management and secure applications for institutions offering internet-based services.
- The Making Online Banking Initiation Legal and Easy (MOBILE) Act of 2018, which allows banks to scan and retain personal information from customers’ driver’s licenses through mobile apps.
Addressing mobile risk in banking requires a layered approach that combines technology, policy and user awareness. Controls such as MDM, authentication, encryption and continuous monitoring must be reinforced by clear usage policies and ongoing education.
Empowering employees and customers to recognize mobile threats — while ensuring secure, user-friendly protections are in place — helps financial institutions reduce risk without sacrificing the digital experiences users expect. In an industry built on trust, securing the mobile endpoint is essential to protecting both assets and reputation.
Let Us Guide You Forward
Cyber threats continue to evolve and find new ways to bypass security controls, exploit mobile devices and compromise corporate data.
Cherry Bekaert’s Financial Institutions and Cybersecurity practices recognize that protecting mobile devices means building awareness and empowering users to make smart, secure choices every day. Our team helps organizations stay informed of the latest threats, security standards and regulatory compliance requirements by offering practical guidance, training, and tools to reduce risk and safeguard your data without sacrificing usability.
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