For millions of people worldwide, mobile banking apps are the lifeline to their finances. With just a tap, you can pay bills, transfer money, or check balances — but cybercriminals see that same convenience as opportunity. One of the fastest-growing threats in 2025 is the overlay attack, a sneaky technique where malware creates a fake screen that sits on top of your legitimate banking app. Victims think they’re typing in their password or PIN, but they’re really handing it straight to attackers.

In February 2025, cybersecurity researchers at ThreatFabric reported a 65% spike in Android banking trojans that specialize in overlays, with malware like Xenomorph and GodFather leading the charge. These trojans often spread through fake apps on third-party stores, phishing SMS (“smishing”), or malicious email attachments disguised as receipts or delivery notices. Once installed, they can steal credentials, intercept SMS-based two-factor authentication codes, and even perform fraudulent transactions in real time. The financial impact is staggering: Europol estimates that banking malware campaigns drained over €500 million from consumers across Europe in 2024 alone.

What makes overlay attacks so dangerous is how invisible they are — users often don’t realize they’ve been hacked until their accounts are emptied. Beyond overlays, cybercriminals are also leveraging keyloggers hidden in rogue apps, remote access tools that give attackers control over phones, and even dark web “Malware-as-a-Service” kits, where anyone with $200 can launch their own banking trojan campaign. So how do you protect yourself? Stick to official app stores, keep your phone updated, and be skeptical of links sent via SMS or email. Enabling app-based two-factor authentication (rather than SMS codes) also adds an extra layer of security.

Financial institutions, meanwhile, are racing to counter these threats with behavior analytics, biometric logins, and AI-driven fraud detection. But at the end of the day, mobile banking security is a shared responsibility: banks can build the defenses, but users must remain vigilant. As our phones become our wallets, remember — losing your device’s security could mean losing your savings.