Why Your Phone Is Now More Valuable Than Your Passport

The Growing Threat of Financial Cybercrime

A £6 trillion global financial cybercrime epidemic is being tackled with technology that in some cases predates the smartphone, leaving both financial institutions and consumers vulnerable. An expert has warned that the fight against sophisticated modern con artists is being hindered by reliance on outdated bank systems.

Chris Thomas, Chief Revenue Officer at NOTO, a company providing next-generation technology to combat financial crime, highlighted that the challenge of fighting cybercrime should push executives into action. He noted that the estimated $5-6 trillion cost of cybercrime to the global economy is five or six times larger than the entire illegal drugs industry. “Those of us in the industry probably think it’s at least double that,” he explained, referencing the significant investment being made by organized criminals who are drawn to the massive financial opportunity.

The Evolution of Fraudsters

These bad actors, described as “very technologically savvy” and the “modern version of the con man,” are exploiting vulnerabilities created by institutions still using 20-year-old technologies that predate digital payments and smartphones. NOTO was formed by a group of seasoned fraud and technology professionals who witnessed firsthand the need for innovation in the payments industry, an environment described as “volatile and fast-paced.”

Fraud is no longer a small issue; it makes up “30 per cent plus of all crime,” with over 30 per cent of the UK population having suffered some type of financial crime. While identity theft remains a concern, the “big risks are around things like people taking over your accounts,” a problem exacerbated by mobile phone theft.

London: A Hub for Mobile Phone Theft

Mr. Thomas highlighted London as the “global capital of mobile phone theft,” with criminals stealing handsets to access personal accounts and empty bank balances. He admitted that this type of incident has affected “multiple people in my own personal circles.” Another emerging threat is the use of deepfake technology, such as the recent case in Hong Kong where it was used to impersonate a CFO and steal a reported $35 million.

For the average consumer, the message is simple: “Don’t lose your handset.” “Your phone now is the key to your life,” containing your email, social accounts, and, most importantly, your financial accounts.

A Collective Responsibility

Mr. Thomas stressed that users must educate themselves and take responsibility, echoing a sentiment that security is a “collective responsibility” shared between individuals and institutions. He advocates for enabling readily available protections, such as a six-digit access code and two-factor authentication, even if it adds friction, because “it’s worth it to stop yourself losing a lot of money.”

SMS one-time passwords is an outdated and vulnerable method, he said, that “was never really publicised” as being insecure. The future of authentication lies in more frictionless technologies like Face ID and biometrics, coupled with an analysis of “behavioural data” to understand in real time what a consumer’s activity should look like.

Staying Vigilant

Mr. Thomas warned that if you stood at a cash point drawing money, you would be aware of someone looking over your shoulder, and the same awareness is needed when using your phone in public spaces such as pubs and bars. The crucial advice for users is to “be aware that your phone is much more valuable than your passport.”

To learn more about the technologies needed to keep pace with the rapidly evolving landscape of financial cybercrime, watch the full interview with Chris Thomas, CRO of NOTO.