Mobile banking: what to do if your phone is stolen

In the UK, approximately 9 in 10 adults use online banking services. A large portion of these services are accessed via mobile apps. And while bank apps are generally safe, criminals use various techniques to steal mobile phones to access mobile apps. 

So how do criminals do it? 

• How do criminals access banking apps on stolen phones?
• 4 steps to take if your phone is stolen with a banking app
• How can I protect myself from mobile phone fraud?
• Mobile banking or online banking - what’s better?

How do criminals access banking apps on stolen phones?

Criminals use techniques such as "shoulder surfing" where they watch you on your phone without you knowing to try to see your login details, passwords and PINs. Once they know your PIN, they will try to steal your phone, and this can include pickpocketing and drink spiking.

Criminals may try using the same PIN to unlock your phone to access banking apps. If that fails, they look through your phone’s notes section for banking passwords or PINs.

Another technique is to reset passwords or request user codes or names. Banks often do this via email or text; if criminals can access your phone, they will likely be able to access these too. If you have a two-factor authentication setup by text or email, remember that they can likely see these on your mobile.

If you suspect your phone has been stolen, it’s important to act quickly and take steps to stop access to your mobile and banking apps.

4 steps to take if your phone is stolen with a banking app

It’s bad enough if you have missed placed or lost your phone, but there is still a chance you may get it back. It’s more serious if your mobile has been stolen, as criminals will likely be trying to get into it. Regardless, in both cases, it’s important not to delay.

Here are a few steps to take:

Step 1: Contact your mobile phone provider

Contact your mobile provider immediately if you know your phone has been stolen. Phone providers such as EE, O2, Vodafone and others can blacklist your phone by using its IMEI number (International Mobile Equipment Identity) and block your SIM.

Once a phone is blacklisted, making calls or using data services will not be possible. It also stops thieves from reselling your phone.

A word of caution, your provider may not have your phone's IMEI number if you did not purchase it directly through them. For example, if you purchased it second-hand. You should still contact your provider so that your SIM is blocked. Otherwise, you may be liable for costs, such as unauthorised calls.

TIP: To get your IMEI number, type *#06# (star, hashtag, zero, six, hashtag) as if you’re making a call (applies to Android or iPhone). Or by looking behind your phone's battery or on the original packaging. It is a 15-digit serial number.

Keep a record of the model of your device and IMEI number somewhere safe.

Step 2: Inform your bank. And cancel any cards linked to Apple Pay or Google Pay

Let your bank know as quickly as possible. Once your bank has been informed, they can take steps to protect your account, such as disabling your mobile banking app and monitoring transactions for suspicious activity.

Your bank will also tell you what to do when your lost phone is replaced. Not informing your bank early might be viewed as negligence and may put you on the hook for transactions not made by you.

Finally, don't forget any bank debit or credit cards saved for mobile payments. Get these blocked or cancelled too.

Step 3: Change important passwords on apps

Change passwords on accounts available on your mobile. Prioritise your email accounts, Apple, Google or Samsung accounts.

Change passwords on your social account, like Facebook, Instagram, Skype and Twitter. When doing this, select the option to log out of all sessions to force out any other devices connected to your accounts.

Step 4: Report the theft to the Police

You can call 101 if you’re in the UK to report a stolen phone. Ensure you get a crime number if you want to claim on the insurance. You will likely need your mobile IMEI number.

How can I protect myself from mobile phone fraud?

It’s easy to think: "It won’t happen to me”. But, much like credit card fraud, mobile phone fraud is real and can happen to anyone at any time. In 2022, 91,000 phones were reported as stolen in London alone. That’s an average of one phone every 6 minutes!

According to "This is Money”, access to bank apps is the main reason for mobile theft. In the first 6 months of 2022, over £15 million was stolen through mobile banking fraud.

Here are a few tips on protecting yourself from mobile theft and fraud:

• Use biometric IDs like face or fingerprint recognition to block access to your phone and apps.
• If you use passwords, make sure they are strong passwords (hard to guess and unrecognisable) and do not use the same password elsewhere.
• If you use a PIN, make sure it is unique and don't use the same PIN to unlock your phone to unlock apps.
• Don't store passwords or PINs on your phone or in places others can get to.
• Beware of your surroundings when using your phone.

According to the Met Police, the most common way phones are stolen in London is through pickpocketing, table surfing, and snatching by persons on mopeds. Table surfing is when someone approaches you, usually while seated, to distract you with an item like a newspaper or magazine placing it on top of an item of value to remove it. 

Apart from the above, checking your transactions daily is recommended. It may be helpful to set up alerts to monitor transactions and spending; this can help you pick up any unauthorised transactions.

Also, try to check your credit report regularly for suspicious activities. Check for hard credit searches and attempts to borrow money in your name, such as a short term loan or personal loan application. Keep your bank cards safe too. If you’ve lost a bank card, report it - unreasonably delaying can be viewed as negligence on your part.

Mobile banking or online banking - what’s better?

Most bank accounts come with a banking app and online banking services. Mobile banking is a service provided by banks to allow customers access to their accounts using a mobile banking application (or app). Some of the advantages of mobile banking include accessing your banking account anywhere, checking your balance, transferring funds, paying bills, and more.

Mobile banking differs from online banking, although the two terms are often mixed. Online banking requires you to log into your bank’s website via a web browser (like Chrome, Firefox or Safari), and this can be through a desktop or mobile phone.

Using your bank’s app to access your account is arguably safer than using a browser on your phone or device. Banks have more control over the security of their app.

Also, fraudsters can create phishing sites, one of many types of online scams, designed to look like a bank's website, or they can use an unsecured WiFi connection to try to capture your online login details - all of which is harder to do with an app. Plus, there are potential browser and browser plugin vulnerabilities to consider.

In summary

There is no doubt that banking apps are convenient. And while banking apps are secure, care is still needed, much like keeping your debit or credit card safe. It is good to be aware of techniques criminals use to steal phones and to take precautions, such as being aware of your surroundings and using biometric IDs to keep your phone and apps locked.

If your phone is stolen with a banking app, there are steps you can take to reduce the risk of criminals hacking your mobile if you act quickly. Those steps include:

1. Contact your mobile phone provider
2. Inform your bank. And cancel any cards linked to Apple Pay or Google Pay
3. Change important passwords on apps
4. Report the theft to the Police

If you are considering applying for an online bank account, you may find it helpful to compare online bank accounts on MustCompare and research options first. It’s free, and there are no forms to fill in.

Did you find this guide helpful? Please hit the "like" heart below.