A user lost Rs 4 lakh after downloading a fake banking app from a legit-looking SMS, enabling scammers to access his account.
These apps mimic real ones, use hidden malware, screen-sharing tools, and steal OTPs, credentials, and even remote device access.
Only download apps from official sources, check permissions, avoid unknown links, and enable two-factor authentication for extra protection.
The growing threat of counterfeit banking apps in India has been on the rise, targeting users. A man from Kerala recently lost Rs 4 lakh from his Provident Fund after a similar incident, where he received a legitimate-looking SMS from his bank asking him to update his mobile banking app. As soon as he downloaded the app and entered his credentials, two transactions, totalling Rs 4 lakh, were wiped out of his savings.
According to the cyber police, the app was fake and had an embedded screen-sharing tool allowing scammers to see everything he typed in real time, giving them full access to his bank account.
This is not the only case. These apps are becoming increasingly common. Though they appear similar to the real ones, they are designed to steal sensitive financial data. Users are often targeted by fake links sent via SMS, email, or social media, and sometimes even appear on app stores, cleverly disguised with realistic logos and names that mimic legitimate banking platforms. Here’s how do they work and how you can spot them.
How do the fake banking apps work?
Scammers use confusing code to hide or delay their harmful behaviour, making them harder to detect.
Some start off as clean, harmless apps, then later update with malicious features once they’ve gained users’ trust.
These links redirect users to fake websites that look like real banking sites to steal their login details.
Many disguise malware in APK files shared through messages or shady ads, tricking users into installing them outside official app stores.
Once installed, these apps can read SMS messages, capture login credentials, and steal OTPs. In some cases, they also gain remote access to devices using screen-sharing tools.
Himani Jha is a tech news writer at Digit. Passionate about smartphones and consumer technology, she has contributed to leading publications such as Times Network, Gadgets 360, and Hindustan Times Tech for the past five years. When not immersed in gadgets, she enjoys exploring the vibrant culinary scene, discovering new cafes and restaurants, and indulging in her love for fine literature and timeless music.