3 Ways that Poor Smartphone Security Can Ruin You

Smartphones offer us unparalleled convenience, enabling us to manage emails, access sensitive data, and communicate across the globe. However, this convenience comes with significant risks. 

A recent study by Verizon showed that 62% of organizational network access occurs via mobile devices. The study also found that 2023 saw a record number of smartphone device attacks with high success in breach rates. 

If you run a business or lead an organization where a data breach can affect your operations, read on. This article will highlight the growing need to take smartphone security more seriously.

1. Intellectual Property Theft Has Become Easier

As more people increasingly rely on their smartphones for work, the risks associated with poor phone security have become a critical concern. This is particularly true when it comes to intellectual property (IP) theft. Intellectual property, which includes trade secrets, proprietary data, and innovative designs, is often stored, accessed, and shared via smartphones.

Data shows that IP theft affects the U.S. economy to the tune of $600 billion every year. Similarly, estimates published in DefenseNews state that intellectual property can account for up to 80% of an individual company's value.

With the rise of remote work and the growing capabilities of smartphones, employees are now using these devices to perform a wide range of tasks. Many of these tasks were once confined to desktop computers. These include accessing company emails, editing sensitive documents, participating in video conferences, and managing proprietary software. 

One of the primary vulnerabilities associated with smartphones is their constant connectivity. Employees frequently connect to public Wi-Fi networks, which are often unsecured and easily exploited by hackers. Once a device is compromised, cybercriminals can gain access to sensitive information stored on the phone.

Intellectual property is often the foundation of a company’s competitive advantage. If the information falls into the wrong hands, it can be used to undermine the company’s market position, either by giving competitors an unearned advantage or by allowing cybercriminals to sell the stolen IP to the highest bidder. 

For startups and small businesses, which may rely heavily on a single innovative idea, the consequences can be particularly dire. It can potentially lead to the loss of investors and market share.

2. It Leaves You Open to Vulnerabilities that Make Money Laundering Easy

It’s a common misconception that only employees and insiders can be involved in money laundering.  The truth is that external scammers can also engage in money laundering through various methods. The most common and effective tends to be phishing attacks to gain access to financial accounts. 

Another particularly devious method is SIM swapping. This is a type of identity theft where a scammer tricks or bribes a mobile carrier into transferring a victim's phone number to a SIM card controlled by the scammer. 

This effectively gives the scammer control over the victim's phone number, allowing them to intercept calls and text messages. The reason this is so dangerous is that it includes two-factor authentication (2FA) codes sent via SMS.

This is why so many businesses and financial institutions are starting to take security, even on a micro level, with employees more seriously. You often find institutions using AML screening software to ensure both compliance and risk mitigation. AU10TIX’s recommended software is one option that many companies are known to use. 

3. Operational Disruption Can Be a Big Deal For Some Companies

There are certain industries where even a brief interruption can lead to cascading effects, resulting in lost revenue, delayed services, and damaged reputations. Statistics show that after a company has a data breach, 66% of consumers simply lose trust in them. 44% of consumers will also blame the company for not maintaining high-security standards. 

In other words, poor smartphone security, whether stemming from your employees' actions or inadequate protective measures, is an increasingly critical factor that contributes to these disruptions. 

When a smartphone security breach occurs, it can trigger operational disruptions in several ways. For instance, malware introduced through a compromised smartphone can spread to other systems, disrupting entire networks and halting operations.

In industries like finance, where transactions are time-sensitive, a disruption caused by a security breach can result in failed transactions, financial loss, and damage to client relationships.

Preventive measures exist and usually include enforcing strict security protocols for employees. Prioritizing encrypted communication, keeping apps and software updated, and adhering to company policies on network usage are some examples. 

To wrap up, you must have seen by now how important it is to maintain high levels of cyber security to stay safe. The rise in smartphone-related security breaches highlights an urgent need for a shift in how we view and manage smartphone security. It’s clear to anyone that as smartphone usage increases, so must our cyber security strategies.