The Silent Cost of Mobile Fraud on Experience-Driven Brands

As mobile experiences become more seamless and immersive, they also become prime targets for increasingly sophisticated, AI-driven cyberattacks. These aren’t just IT issues, they’re CX issues.

It’s fair to say that mobiles run the world; using the apps on our phones, we date, transfer money, buy & sell goods, schedule events, and so on. It is at the very heart of the global commerce landscape.

But it’s under threat.  

Consumers and the mobile apps they use are constantly under a barrage of threats of all shapes and sizes, and businesses are struggling to keep up. The vast amount of data stored on these mobile apps is incentivising cybercriminals to attack at will, leaving a trail of devastation behind them.   

With the help of AI, these fraud attacks can be launched in seconds. The result? Significant disruption to not just the mobile app experience, but to the perception of the entire brand.  

Cyberattacks don’t just impact the digital experience. They leave consumers with a sense of violation and distrust. In fact, 71% of people will abandon a mobile brand after a breach. Once trust is lost, customers will vote with their wallets and choose a competitor that doesn’t have these same issues. That’s why protecting users from cyber fraud isn’t just a security imperative; it’s the foundation of a trustworthy, customer-first experience and an undisputed five-star reputation. To stay ahead, mobile brands must proactively adopt AI-native security solutions that evolve as quickly as – or more quickly than – threats do. 

Exploiting Vulnerabilities  

These breaches aren’t random; they’re increasingly sophisticated, driven by AI-enhanced tactics. Social engineering – one such technique – involves manipulating individuals into revealing confidential information by pretending to be someone they’re not. With AI, these attacks have become more convincing than ever.  

Criminals are also now deploying mobile deepfakes, AI-generated images and voice clones, to bypass biometric authentication on mobile apps. Once considered unbreakable, biometric security is now a legitimate target for hackers. Face ID bypass attacks, for example, can be executed in the background, without needing physical access to the device. This allows criminals to exploit all the apps on a mobile, from banks and shopping to health and travel.  

In addition, costing UK businesses an average of £600k per year, criminals launch bot attacks. Here, criminals mimic real users by exploiting the mobile app itself, using real mobile devices, real app sessions, and human-like behaviour (e.g., fake taps and swipes) which helps them blend in. What makes these hard to detect is that they evade traditional defences and web application firewalls (WAFs) with AI-powered bots by hiding inside mobile flows. This includes login pages, payment systems and KYC (know your customer), which is a process that cross-checks identities and aims to prevent fraud. 

Ultimately, it is these very experience-driven, transaction-based mobile apps that are most targeted. The instantaneousness of authentication, the frictionless purchasing and continuous user engagement are what make them most appealing, and make consumers open to identity theft. It’s no surprise that fraud is the most common crime in the UK.  

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Taking its Toll  

Whilst the consumer often bears the immediate brunt of an attack, the broader consequence for mobile brands is catastrophic. Over half of consumers have already deleted or stopped using a mobile app due to security or privacy concerns. This stems from not investing enough resources into next-generation security infrastructure.  

To add to this, attacks have become more successful, faster, more effective, and most of the time undetected. It means that consumers have a hard time spotting the signs of an attack and end up with compromised personal details and a lasting negative impact on the brand. After all, it only takes one attack to tarnish a brand’s reputation. The emotional impact on users who may feel exposed, frustrated or betrayed can linger far longer. 

These persistent threats place a large burden on the reputation of mobile brands whose differentiator is the customer experience. Many companies known for providing excellent experiences have recently suffered cyberattacks which affected the entire customer journey, and the fallout was witnessed by everyone.  

Security is Not Just The Cherry on Top 

Consumers don’t think about security. And they shouldn’t have to. They invest their money and time into experience-driven moments that either get them from A to B or offer a service.  

To combat the issues that arise because of weakened security, mobile brands must invest from the get-go. Traditional security models can’t withstand the evolving minds and tactics of criminals, especially being spurred on by AI. Businesses can’t be using legacy platforms that aren’t up to scratch for the current technology available to criminals.  

So, security teams should get ahead of them, protecting consumers by implementing robust, AI-native security defences which go above and beyond. This includes detecting attacks and threats from monitoring vast pools of data. Doing so generates specific insights that enhance the performance of the security platform in place. These defences run in the background and prevent fraud attacks before they’re launched. After all, proactive investment in strengthened security measures isn’t just about protection; it’s about ensuring a seamless, trustworthy customer journey. 

Strategy for Success  

Customers choose mobile brands based on the experiences they and others have had. When that experience involves fraud or a breach of trust, it’s rarely forgotten. More often than not, it’s shared in app store reviews and social media posts that can send reputations plummeting overnight.  

Mobile fraud is a persistent, often invisible threat that undermines customer confidence and brand loyalty. It must be addressed continuously and proactively, not just reactively. The brands that stand out are those that treat security as core to the customer journey and not just as an afterthought. In a competitive mobile landscape, customer experience isn’t just a metric. It’s a strategic asset that defines long-term success.  

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