What is Mobile App Fraud | chargebackhit.com

Mobile App Fraud


Mobile app fraud involves illicit activities within mobile applications, like purchasing stolen data or attempting unauthorized access to user information. With the growing use of mobile payments, these apps are prime targets for fraud.

Compared to websites, mobile apps face unique security challenges due to limited security tools and the appeal of small transactions for card testing. Unlike websites, apps lack the same ease of securing with readily available tools and code.

Mobile apps, unlike websites, have always been commercial ventures, lacking the inherent security benefits of browser-based systems. Consequently, securing apps is more intricate.

Even apps not storing payment data can attract fraudsters seeking personal information for phishing or identity theft. No app is too insignificant to be a target if it handles transactions or personal data.

Mobile app fraud encompasses various types of fraudulent activities impacting chargebacks and payments. These include:

  • Click Injection: Fraudsters create apps that detect new app installations on Android devices and generate fake advertising clicks to take credit for the installs. This type of fraud doesn’t work on iOS due to different notification systems.
  • Device Fraud: Fraudsters employ outdated mobile devices to automatically download apps, click on ads, or post reviews. This setup is often used for affiliate fraud or as part of fraud-as-a-service schemes.
  • Mobile Payment App Fraud: Fraudsters impersonate legitimate organizations (e.g., IRS or sweepstakes companies) to dupe users into sending money via payment apps like Cash App or Venmo to untraceable accounts.

Mobile app fraud encompasses various deceptive practices beyond payment fraud, affecting users and merchants.