Mobile banking: alarm as fraudsters take over handsets and raid accounts

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Scams underline risks of banking on mobile, with not all lenders prepared to refund victims

The risks of doing banking on your mobile handset have been underlined by the stories of Guardian Money readers who had their mobiles taken over by fraudsters, who then emptied their bank accounts.

She says she first noticed that something was wrong on 14 June when her phone went dead. O2 told her that the network was down and not to worry. Five minutes later a colleague rang her partner to say they had been receiving strange messages from her asking for money. An O2 spokesperson said: “Unfortunately, following a data breach elsewhere, Ms Downs has been a victim of fraud, with a scammer able to pass security and multi-factor authentication on the account to order a replacement sim. We’ve apologised for the delay in resolving her issue and are pleased to have now returned her mobile number to her.

account after fraudsters were able to take control of her O2 mobile service. Barclays later refunded her but she warned others to be on their guard if their mobile phone suddenly stopped working. The 70-year-old, who works in business accounts, says she has no idea how the fraudsters were able to access her smartphone handset. In her case, the phone suddenly stopped working and went into “safe mode”.

 

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