APK Fraud In India: Risks & Safeguards For The Latest Banking Scam

Digital banking has evolved to the extent that the entire banking experience is now online. Cybercriminals keep coming up with new avenues to target unsuspecting bank users. In India, a recent banking scam called "APK fraud" has emerged, targeting online bank users whose personal banking information can be compromised by simply clicking on a link.

In this guide, we’ll be covering APK bank fraud in India—how to spot, reduce and report the risk. We will also answer some common questions about fake bank APKs.

What is an APK file?

An APK file (short for Android Package Kit) is the file format used to install mobile applications on Android devices. Technically, it's the equivalent of an executable file (.exe) on Windows.

Typically, the products and service providers who want to release their Android app, make their official APK available to download from the Google Play Store. However, they can also be obtained from other sources like a website, WhatsApp forward, social media post, etc. which are usually the sources of such fraudulent APKs.

Looking to download the mobile banking app from an official channel? Explore Kotak 811 App  for your Android or iOS.

How does the APK bank fraud work?

First off, understand that a fake APK of a bank can mimic the screens identical to that of a legitimate banking app—and this is where the risk lies.

Cybercriminals distribute fraudulent APK files through various channels, including phishing emails, text messages, and social media. Sometimes, they can also call you, pretending to be your banking official, and manipulate you into downloading the APK. In most cases, they entice potential victims to download these apps by offering special discounts or flagging an urgent issue with their existing app.

Once you download the fake bank APK, the next steps go something like this:

1. Permissions for access: You might be prompted to grant various permissions, such as access to your camera, microphone, contacts, and SMS messages. These are typically more than what a genuine bank app would ask for.
2. Stealing Information: After installation, they wait for you to enter your credentials, your username, password, and even one-time passwords (OTPs) on the app screen. And all of this personal data can be recorded by scammers.
3. Draining Accounts: With your stolen information, criminals can access your bank accounts and siphon off your money. They typically drain the entire account in one go.

Preventive measures for the bank APK scam

To protect yourself from APK fraud, banking experts suggest the following measures:

1. Download apps from trusted sources: Stick to the official app store of Android, the Google Play Store. Avoid clicking on links or downloading apps from unknown sources, influencers, or discount deal messages even if they appear legitimate.
2. Verify app authenticity: Before downloading an app, check the developer's name, user reviews, and ratings. Genuine banking apps typically have a high number of downloads and positive reviews.
3. Scrutinise app permissions: Before installing any app, carefully review the permissions it requests. Be wary of apps asking for excessive permissions, such as access to your camera or microphone.
4. Enable two-factor authentication (2FA): Add an extra layer of security by enabling 2FA for your banking apps. You should also update the code/pattern of 2FA every few weeks.
5. Monitor your bank statements: Regularly review your bank statements for any unauthorized transactions. Especially after any large amount transactions.

Lastly, you should ensure that your smartphone's operating system and apps are up to date with the latest security features. Because your official bank constantly works on strengthening the safety features to deal with the most common and latest APK fraud threats.

But what if you clicked on the fake bank APK file?

Despite the best of our efforts, it can happen that you or your loved one mistakenly clicks and installs one such fake bank app. The good thing is that if you are aware of this, you can take some quick actions to mitigate the risk of APK fraud.

1. Uninstall the app immediately: Remove the app from your device as soon as possible.
2. Change your passwords: Update passwords for your banking and other online accounts.
3. Contact your bank: Inform your bank about the suspected fraudulent activity. They can help you secure your accounts and take further action.
4. Monitor your accounts closely: Keep a close eye on your bank accounts for any suspicious activity.

It is also recommended to report such fake bank apps to the Google Play Store and leave a helpful review so other users can be aware of it.

Also read: Guide On Safe Banking To Help You Secure Finances

Conclusion

As the latest banking scam, APK fraud cases are growing in India. Rest assured, your bank is aware of it and is already working on bringing up the guards against such scams in coordination with the authorities. That said, you must also stay aware about such scams and be proactive in your interactions with such bank apps, calls, or messages to enjoy the digital banking experience.

FAQs

Are APK files viruses?

Not all APK files are viruses, but they can contain malware. Downloading APKs from untrusted sources increases the risk.

How do I know if an APK file is safe?

Only download APKs from trusted sources like the Google Play Store. Verify the app's developer, read reviews, and check for suspicious permissions.

Can I safely delete APK files?

Yes, you can safely delete APK files after installing the app. However, deleting a malicious APK won't necessarily remove the malware if it's already installed.

Can I reverse a bank transfer if scammed by an APK file?

Reversing a bank transfer after being scammed is challenging. Contact your bank immediately to report the fraud and increase your chances of recovery.

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This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empanelled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees, and contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.