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cybersecurity

Apr 15, 2025

Smartphone Rental Trend: A Data Theft Threat

Beware of smartphone rental risks! Your ID card, selfies, and account logins can be used by scammers to steal your identity and hijack your accounts. Check out these safety tips.

Renting a smartphone for short-term needs such as business trips, concerts, special events, family gatherings, or holidaysmay seem practical. Social media is flooded with smartphone rental offers in various forms. Most people rent smartphones to get high-quality photos. According to Kompas, Drajat Tri Kartono, a sociologist from Universitas Sebelas Maret, mentioned that the trend of smartphone rentals is driven by the symbolic need to show one’s social class.

Several local media have reported a surge in smartphone rental demand in major cities like Bandung, Surabaya, Semarang, and Banyuwangi leading up to Eid al-Fitr.

Renting a smartphone may look appealing. However, behind this convenience lies a major risk to your personal data security and the potential hijacking of your digital accounts. Rental devices can be a loophole for cybercriminals to access sensitive information without the need to hack complex systems.

Why Are Rented Smartphones Risky?

Niki Luhur, Founder and Group CEO of VIDA, emphasized that renting a smartphone for temporary use may be practical, but don’t forget that the device may store traces of our sensitive data.

“Many people don’t realize that when they rent a smartphone and use it to access digital accounts or input personal data like an ID card or personal selfie, they are exposing themselves to online threats. With this, scammers can take over any account in just minutes—and that’s what we call Account Takeover,” he said.

Here are reasons why you should be cautious when renting a smartphone:

1. You Must Submit Personal Data

Most smartphone rental services require customers to submit their ID card and a selfie as a borrowing requirement. Some even ask users to log in to certain apps for "function testing" purposes. While it may appear to be for security, this poses a risk. Submitting both an ID card and selfie combines personal and biometric data—a goldmine for cybercriminals to commit identity theft and account takeover.

Fraudsters can impersonate you, apply for loans, access your bank account, or hack your social media. Especially with deepfake technology, it’s easy for AI to generate fake visuals using your face.

2. Data Traces Left Behind

When using a rented smartphone, renters may log in to social media or leave behind data traces. Even if they log out, app cache, cookies, and login info often remain on the device. This wouldn’t be a problem if the device owner deletes the data and has good intentions. But what if they don’t? This is why smartphone rentals create opportunities for irresponsible parties to access previous users’ accounts and personal info.

3. Risk of Account Takeover (ATO)

Account Takeover (ATO) is a type of cybercrime where perpetrators take over a user’s account to commit fraud or steal data. Simply put, it's account hijacking. VIDA data shows that 7 out of 10 cyberattacks on businesses and individuals involve unauthorized access from unknown devices or locations.

Using unsecured rental devices can make it easier for scammers to take over accounts, especially if login credentials or personal data remain on the device.

4. SIM Swap Threat

Imagine if a renter logs into their personal account using their phone number. A malicious device owner could then use a technique called SIM swapping—transferring the renter’s number to a SIM card they control.

If the process is successful, all OTPs (One-Time Passwords) or security notifications sent to that number will go to the scammer’s device, not the original owner’s. This makes it easy to take over accounts like mobile banking, e-wallets, and even emails.

5. Phishing from Fake Apps or Modified Systems

In addition to SIM Swap, phishing is another serious threat when using rented smartphones. Devices from untrusted sources may come pre-installed with fake apps that mimic real ones—like banking or social media apps.

If renters are tricked, they’ll unknowingly log into their personal accounts using the fake app. Everything they input gets sent to scammers. Terrifying, right?

Also, if renters receive suspicious SMS or WhatsApp messages with fake links, they might click on them, leading to data theft.

Preventive Measures

The numerous fraud risks from smartphone rentals mean prevention isn’t so simple. Here are some steps you can take:

1. Avoid Saving Sensitive Information

Do not save passwords, PINs, or banking details on a rented smartphone. Clear cache and delete all personal data. Arrange with the device owner to erase any residual data.

2. Perform a Factory Reset

You can also request this from the device owner. Before and after using the rented device, perform a factory reset to erase all stored data.

3. Avoid Logging In to Critical Accounts

Avoid logging in to banking, email, or social media accounts using devices that aren’t yours.

4. Use Multi-Factor Authentication (MFA)

Activate MFA on all important accounts to add an extra layer of security. However, be sure to choose a secure MFA method. Avoid SMS-based OTPs, which are vulnerable to SIM swap and interception. Instead, use:

Biometric authentication: Such as facial recognition that can only be used by the rightful account owner. VIDA offers a biometric authentication solution called VIDA FaceToken.

Device-based authentication: VIDA offers PhoneToken, which locks the account to a specific device using Public Key Infrastructure (PKI). This means only registered devices can be used to log in. So, even if data is stolen, your account stays safe.

By combining biometrics and devices, authentication becomes much stronger because it doesn’t rely on data or codes that can be stolen. Instead, it uses the real identity of the user which are their face and a verified device. This authentication is highly recommended to prevent account access from rented smartphones.

Whether or not to rent a smartphone is your decision. But if you must rent one, make sure to take the proper precautions!

VIDA - Verified Identity for All. VIDA provides a trusted digital identity platform.

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