Mobile malware is harmful software designed to infiltrate mobile phones and tablets through ads or apps. Its purposes include stealing sensitive data, misusing device functions, holding the device for ransom, and generating fake traffic.

What is mobile malware?

Mobile malware refers to malicious software designed to access and harm mobile phones and tablets, typically via ads or apps. Its primary objectives are to steal sensitive data, misuse device functions, hold the device ransom, and create fake traffic. As mobile device usage has increased, so have the threats, with hackers adapting their tactics from desktops to mobile platforms. This evolution underscores the importance of robust mobile security measures.

How mobile malware operates

Mobile malware typically infiltrates devices via malicious apps, especially those downloaded from third-party app stores or side-loaded outside official channels. This malware can be pre-installed on some low-end devices or downloaded without the user’s knowledge through deceptive methods.

What kind of risks and damage are connected with mobile malware?

Mobile malware poses significant risks not only to individual users but also to businesses and mobile marketers. The consequences of mobile malware include:

• Data breaches – personal and sensitive information can be stolen and misused.
• Financial loss – through fraudulent transactions and ransomware.
• Reputation damage – trust in affected apps and brands can be severely damaged.
• Resource misuse – malware can lead to increased data usage, reduced battery life, and overall poor device performance.

Types and methods of mobile malware

• Click injection/click hijacking – this method involves malicious apps that detect when a legitimate app is being downloaded and then inject a fake click to claim the attribution. Attackers benefit by earning fraudulent ad revenue meant for legitimate advertisers. This scam consumes device resources and data without user knowledge, leading to potential financial losses for advertisers who lose revenue to fraudsters.

  In more detail, click injection occurs when a malicious app monitors the device for app installation broadcasts. Upon detecting an installation, the malware swiftly generates a fake click that appears to originate from the app being downloaded. This deceives attribution systems into crediting the fraudulent app for the installation, thus diverting marketing budgets to the fraudster instead of the legitimate sources. Consequently, advertisers pay for fake installs, leading to wasted ad spend and skewed campaign metrics, which undermine the effectiveness of their marketing efforts. This not only results in immediate financial losses but also damages the overall efficiency and accuracy of marketing strategies, causing long-term detrimental impacts on the advertiser’s return on investment (ROI).

• Data theft – malware designed to access and steal personal and financial information stored on the device. Attackers gain access to sensitive data such as login credentials, bank details, and personal information, which they can sell or use for identity theft and fraud. This compromises user privacy and can lead to significant financial and legal consequences for victims. Data theft is particularly dangerous because it targets the most sensitive information stored on a user’s device. Attackers can exploit stolen data in numerous ways, causing extensive harm to the victim:
  • Financial loss – stolen bank details and credit card information can be used to make unauthorized transactions, draining the victim’s accounts.
  • Identity theft – attackers can use personal information to create false identities, apply for loans, and credit cards, or commit other forms of fraud in the victim’s name.
  • Privacy invasion – access to personal data can lead to blackmail, harassment, or further exploitation.
  • Reputation damage – sensitive information leaked or misused can harm the victim’s personal and professional reputation.
  • Legal consequences – victims may face legal challenges if their stolen identity is used for illegal activities.
• Ransomware – malware that locks the device or encrypts its data, demanding a ransom for its release.
  • How ransomware works – ransomware typically infiltrates a system through phishing emails, malicious downloads, or exploiting vulnerabilities in software. Once the malware is executed, it begins encrypting files on the victim’s device or network. The attackers then display a ransom note, often demanding payment in cryptocurrency to unlock the encrypted data.
    • Infection – the ransomware is delivered through deceptive methods, such as email attachments in spam or links to malicious websites. It can also exploit vulnerabilities in software.
    • Encryption – after gaining access to the system, the ransomware encrypts the victim’s files, making them inaccessible.
    • Ransom demand – a ransom note is displayed, demanding payment for the decryption key. The note typically includes instructions for payment, usually in cryptocurrency, to ensure anonymity.
  • Impact on victims – the impact of a ransomware attack can be devastating, leading to:
    • Financial losses – victims may lose significant amounts of money paying the ransom or dealing with the aftermath of the attack.
    • Data loss – even if the ransom is paid, there is no guarantee that the attackers will provide the decryption key.
    • Operational disruption – businesses can experience severe disruption, halting operations and affecting productivity.
    • Reputation damage – a ransomware attack can damage an organization’s reputation, leading to a loss of trust from customers and stakeholders.
  • Why attackers use ransomware – attackers use ransomware because it is a highly profitable form of cybercrime. The anonymity provided by cryptocurrencies makes it difficult for law enforcement to trace the transactions. Additionally, the widespread use of digital devices and the increasing value of data make ransomware an attractive option for cyber criminals.
  • Preventing ransomware attacks – preventing ransomware attacks involves a combination of proactive measures:
    • Regular backups – regularly back up important data to offline storage to ensure it can be restored without paying a ransom.
    • Security software – use robust antivirus and anti-malware software to detect and block ransomware.
    • Software updates – keep all software and systems updated to patch vulnerabilities that ransomware can exploit.
    • Employee training – educate employees about the risks of phishing and the importance of not clicking on suspicious links or attachments.
    • Access controls – implement strong access controls and limit user permissions to reduce the risk of ransomware spreading within a network.
• Spyware – spyware refers to a type of malicious software that covertly monitors and records user activities on their devices without their knowledge. This form of malware can infiltrate systems through various means, such as malicious downloads, email attachments or compromised websites. Once installed, spyware can gather extensive information about the user, including their behavior, location, and communications, posing significant risks to both individuals and organizations.
  
  • How spyware works – spyware operates stealthily, often running in the background and avoiding detection by traditional security measures. It can record keystrokes, capture screenshots, track browsing habits, and even access personal files and emails. This collected data is then transmitted to the attacker, who can use it for various malicious purposes.
  • Why spyware is dangerous – spyware is dangerous because it covertly monitors and records user activities, leading to privacy breaches, blackmail, and unauthorized access to sensitive information. This type of malware can compromise user security, result in significant financial losses, and expose personal and corporate data to exploitation
    • Blackmail – attackers can use sensitive information obtained through spyware to extort money or other favors from victims. For instance, personal photos, private conversations, or confidential business information can be leveraged for blackmail. The fear of exposure can coerce victims into complying with the attackers’ demands, leading to financial and emotional distress.
    • Data breaches – collected data from spyware can be sold to other criminals on the dark web, leading to widespread exploitation. This information can include login credentials, credit card numbers, and personal identification details. The sale and misuse of this data can result in large-scale data breaches, affecting not only the individual victim but also potentially thousands of others if corporate data is compromised.
    • Unauthorized access – attackers can use the gathered information to gain access to other secure systems and accounts. This unauthorized access can lead to further security breaches, including accessing corporate networks, financial accounts, or personal emails. Once inside these systems, attackers can steal more data, cause disruptions, or deploy additional malware.
  • Why hackers use spyware – attackers benefit significantly from spyware in several ways:
    • Blackmail – attackers can use sensitive information obtained through spyware to extort money or other favors from victims. For instance, personal photos, private conversations, or confidential business information can be leveraged for blackmail. The fear of exposure can coerce victims into complying with the attackers’ demands, leading to financial and emotional distress.
    • Financial gain – selling stolen data or blackmailing victims provides a direct financial benefit. Additionally, spyware can be used to steal banking credentials and conduct unauthorized transactions.
    • Espionage – in some cases, spyware is used for corporate or state-sponsored espionage, gathering intelligence on competitors or foreign governments.
    • Control and manipulation – by accessing personal information, attackers can manipulate victims or further exploit their devices and networks for additional malicious activities.
• Ad fraud – ad fraud involves malware that generates fake ad impressions and clicks, misusing device resources for fraudulent purposes. This malicious activity allows attackers to profit from ad revenue that should rightfully go to legitimate advertisers and publishers. The impact of ad fraud extends beyond financial losses (see attribution fraud), affecting device performance, user experience, and the integrity of the digital advertising industry.
  • How ad fraud works – ad fraud can be perpetrated through various methods, all of which exploit the digital advertising ecosystem to generate illegitimate revenue. The most common techniques include:
    • Fake ad impressions – malware generates false impressions of ads, making it appear as though real users are viewing them.
    • Click fraud – malware simulates user clicks on ads, falsely inflating click-through rates and generating revenue for the fraudsters.
    • Ad stacking – multiple ads are layered on top of one another, where only the top ad is visible, but impressions are counted for all ads in the stack.
    • Pixel stuffing – ads are placed in a 1×1 pixel frame, rendering them invisible to users but still generating impressions and clicks.
  • Impact on the advertising ecosystem
    • Advanced detection tools – use sophisticated algorithms and machine learning to identify and block fraudulent activity in real time.
    • Collaboration – industry stakeholders, including advertisers, publishers, and ad networks, must work together to share information and develop best practices.
    • Transparency – promoting transparency in the ad supply chain helps ensure that all parties can track ad delivery and performance accurately.
    • Regular audits – conducting regular audits of ad campaigns and traffic sources helps identify and mitigate fraudulent activities.
  • Why cybercriminals use ad fraud – attackers are drawn to ad fraud because of the significant financial gains it offers. By generating fake impressions and clicks, they can siphon off substantial ad revenue from legitimate stakeholders. The relative anonymity of digital transactions and the complexity of the advertising ecosystem make it challenging to track and eliminate fraud, further incentivizing malicious actors.
  • Preventing ad fraud – combating ad fraud requires a multifaceted approach that includes technological solutions, industry cooperation, and vigilant monitoring:
    • Advanced detection tools – use sophisticated algorithms and machine learning to identify and block fraudulent activity in real time.
    • Collaboration – industry stakeholders, including advertisers, publishers, and ad networks, must work together to share information and develop best practices.
    • Transparency – promoting transparency in the ad supply chain helps ensure that all parties can track ad delivery and performance accurately.
    • Regular audits – conducting regular audits of ad campaigns and traffic sources helps identify and mitigate fraudulent activities.