Why your mobile phone is now more valuable than your passport
Partner content, in association with NOTO.
A £6 trillion global financial cybercrime epidemic is being fought with technology that in some cases predates the smartphone, leaving financial institutions and consumers exposed, an expert has warned.
Chris Thomas, Chief Revenue Officer at NOTO, a company providing next generation technology to combat financial crime, highlighted that the fight against sophisticated modern con artists is being hampered by reliance on outdated bank systems.
Mr Thomas told CityAM that the sheer scale of the challenge should spur executives to action, noting that the estimated $5-6 trillion cost of cybercrime to the global economy is five or six times bigger 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 organised criminals who are attracted by the massive financial opportunity.
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 first-hand 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.
Mr Thomas highlighted London as the “global capital of mobile phone theft,” with criminals stealing handsets to access personal accounts and empty bank balances, a type of incident he admitted 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.
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 are 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.
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.”
Watch the full interview with Chris Thomas, CRO of NOTO, to learn more about the technologies needed to keep pace with the rapidly evolving landscape of financial cybercrime.