Quarterly Scam Safeguard | Why Phones Have Become the Leading Vector of Cyberattacks

Why Phones Have Become a Leading Source of Cyberattacks

Smartphones have emerged as a prevalent channel for cyberattacks due to their continuous internet connectivity, the vast troves of personal data they carry, and their frequent use for sensitive activities like banking. Unlike computers, users are often less cautious when securing their phones, making them a prime target for hackers. Attackers exploit vulnerabilities through malicious apps, phishing attempts, and unsecured networks. So, while not all cyberattacks involve spam calls, they are a prevalent source of this issue.^1,2

In the first half of 2024, over 19 billion calls were flagged as spam globally. More than a third of unknown calls were unwanted, with 22% labeled as nuisance and 7% as fraudulent.^1,2

Our chart below demonstrates several of the most prevalent scams you might already be the target of, ranging from Medicare scams to insurance fraud and other related matters.

Why cyberscammers target phones:

• Heavy Usage and Personal Data Storage: Smartphones are used for online banking, social media, and managing sensitive data, making them a target for cybercriminals.
• Frequent App Downloads: Many users download apps from third-party sources, often laced with malware, allowing attackers to compromise the phone’s security.
• Lax Security Measures: Most users rely on simple passwords or screen locks, ignoring more robust security features.
• Mobile Phishing Attacks: Phishing scams trick users into clicking on harmful links that compromise their phones.
• Unsecured Wi-Fi Networks: Public Wi-Fi can leave devices vulnerable to attackers who exploit unsecured connections to access data.
• Mobile Malware Growth: Apps designed to steal data, monitor activity, or send unauthorized messages from compromised phones.

This growing threat of phone-based attacks emphasizes the need for more robust mobile security practices for individual users and across global networks. It may be an excellent time to talk with your provider about best practices and what you can do to avoid cyberattacks.

How to Recognize and Stop Common Phone Scams

In the first half of 2024, the most prevalent phone scams in the U.S. revolved around health insurance. Topping the list were Medicare-related scams targeting Americans aged 65 and older who rely on this government-funded health plan. Despite ranking first, Medicare scams declined compared to previous levels, which peaked in November 2023 during the Medicare open enrollment period. The takeaway:if you get an aggressive sales call, especially one that offers free testing or medical supplies or demands personal information or money, it might be best to excuse yourself from the call and contact a professional who can speak to the issue.^1,2

Coming in second were broader insurance scams, which included schemes involving health, auto, life, and home insurance. General health products and services-related scams ranked third, while tax scams steadily rose to fourth place. As the April 15 tax filing deadline approaches, scammers can shift their tactics to warnings about penalties for non-payment of taxes. The takeaway:Don’t take a caller at face value, whether they say they’re from the IRS or an insurance company! If you suspect something isn't correct, consider asking the caller for their phone number so you can call them back. That can be a difficult request for a scammer.^{1 ,2}

Other scams rounding out the top ten included relief scams (such as those offering debt, mortgage, and student loan relief), credit card fraud, and threats of arrest from fake police calls. The takeaway:expect a few scam calls this year, so be ready!^{1 ,2}

While there’s no surefire way to spot every scam, slowing down and objectively approaching any information from an unknown third party may improve your ability to detect fraudulent content. Here are some additional tips to help you stay ahead of phone scams:

• Don't answer unknown numbers. Let it go to voicemail
• Don't give out personal information, especially not passwords or Social Security numbers
• Hang up on any caller claiming to represent a business or entity and verify by calling the company or agency directly
• Register with the National Do Not Call Registry (DNC) list
• Use call blocking through your phone provider
• Report scam calls to the Federal Trade Commission (FTC)

Phone scams are preventable! With a bit of patience and careful attention, you may be able to manage your risk and stay safer in an increasingly digital world.

<sup>1. HIYA.com, 2024

2. Federal Trade Commission, 2024</sup>