London, UK: A report out today reveals a staggering rise in mobile phone thefts, calling for urgent industry action. The report, commissioned by UK fintech Nuke From Orbit, highlights alarming statistics about the scale of the issue and calls for greater collaboration between manufacturers, network providers, and consumers to stem the tide of phone-related crimes. 

The research, titled "The Rising Threat of Smartphone Theft: Consumer Behaviour and Security Challenges," shows that smartphone theft has increased by 12% since 2023, with 29% of consumers reporting that their phone has been stolen. It exposes the limitations of siloed security measures and, crucially, raises concerns about a potential decline in public confidence in the response to these crimes. This increase is not just a matter of inconvenience. It directly affects the security of mobile banking apps, digital wallets, and financial services accessed via smartphones. 

A particularly concerning finding is that 34% of users continue to use the same or similar PINs across different apps, including those used to unlock their phones. This poor “PIN hygiene” leaves them vulnerable to theft and subsequent unauthorised access to sensitive financial data.

The report also sheds light on the challenges consumers face after a theft. 84% of victims encounter obstacles in securing their data, reflecting significant gaps in current recovery processes. Consumers are most worried about unauthorised access to bank cards and accounts, with 67% highlighting this as their top concern.

There is a growing unease about the role of AI in this landscape, with 57% of consumers believing that advancements in AI heighten the risk of unauthorised phone access. The technology sector needs to address these concerns and develop security solutions to stay ahead of potential AI-enabled threats.

A key finding of the report is the disparity in responsibility. Many consumers believe that device manufacturers and network providers need to take stronger action to secure devices and data, while also recognising the role that consumers themselves play in protecting their information. However, confidence in the current system is low. Those who have never experienced phone theft are nearly three times more likely to report thefts to the police than those who have, indicating a crisis of confidence in the current response mechanisms.

"This research paints a stark picture of the challenges our industry faces," says James O'Sullivan, CEO of Nuke From Orbit. "The current fragmented approach to security is simply not effective. The fact that smartphone theft has increased by 12% in just two years, and that 84% of victims face obstacles in protecting their data afterwards, demonstrates the urgent need for a fundamental change. But beyond the technology, the data suggests a potential crisis of confidence in how these crimes are addressed, which directly impacts the trust consumers place in the services they access on their phones. The technology and finance sectors must collaborate to build a more secure and resilient ecosystem."

The report calls for the industry to step up, building on initiatives such as the government summit convened by the Home Secretary, which brought together law enforcement and leading tech companies to drive new action against mobile phone theft. It highlights the need for the sector to take responsibility, alongside consumers, to develop more integrated and robust security measures.

"It is our hope that by educating consumers about the risks they face, and by working collaboratively across industries and with law enforcement, we can begin to restore confidence and create a safer environment for smartphone users, particularly when it comes to their financial activities," adds O'Sullivan.