In 2024, mobile app security incidents cost companies an average of $4.97 million, and mobile applications were linked to more than 60% of digital fraud cases worldwide, according to IBM Security. With attackers exploiting weak authentication, insecure APIs, and poor encryption practices, even a single flaw can expose thousands of user records.
This is why mobile application penetration testing has become a critical defence layer. By simulating real-world attacks, it helps companies protect user data, maintain trust, and ensure compliance in an increasingly regulated digital era.
How Mobile Application Penetration Testing Protects User Data?
Mobile Application penetration testing is designed to uncover weaknesses that attackers could exploit to steal data, break into accounts, or misuse app functions. Testers simulate real-world attack scenarios, analyze app behavior, and validate whether security controls are working as intended. Here’s a detailed breakdown of how this process safeguards user data:
1. Detecting Insecure Storage Practices
One of the biggest risks in mobile apps is how they store sensitive data internally. Penetration testers examine whether information such as passwords, authentication tokens, session IDs, or personal details is stored in:
- Plain text files
- Application logs
- Cache folders
- Unprotected backups
They also review how encryption is implemented. If data is not encrypted using strong standards or stored using insecure methods, attackers can extract it from rooted devices or during forensic analysis.
Outcome: Developers receive guidance on implementing secure storage through Android Keystore or iOS Keychain, and enforcing AES-256 encryption.
2. Securing API Communication Channels
APIs act as the bridge between the mobile app and backend server, and they are a primary target for attackers. Testers analyze:
- Token validation and expiry
- Authentication mechanisms
- Encryption applied during data transmission
- Rate limiting and abuse protections
Using tools like OWASP ZAP, and Postman, they validate whether APIs can be abused to access sensitive data or perform actions without proper authorization.
Outcome: Organizations strengthen their APIs with protocols like OAuth2, JWT, and TLS 1.3.
3. Fixing Authentication & Session Handling Flaws
Penetration testers check if the authentication process is strong enough to withstand real attacks. They look for:
- Missing Multi-Factor Authentication (MFA)
- Weak password policies
- Long-lived or predictable session tokens
- Session IDs not invalidated after logout
They also perform simulated attacks such as credential stuffing, brute force attempts, or session hijacking to measure resistance.
Outcome: Apps adopt secure login flows, enforce MFA, and use safer session management practices.
4. Testing Encryption Strength & Implementation
Encryption only protects data if it is modern, correctly configured, and consistently used. Testers verify:
- Encryption of data at rest (preferably AES-256)
- Encryption of data in transit (TLS 1.3)
- Secure key management (keys not hardcoded in the app)
- Avoidance of outdated or deprecated algorithms
Through this, they identify weak spots where attackers might decrypt sensitive information through interception or reverse engineering.
Outcome: Apps maintain strong cryptographic hygiene aligned with global standards.
5. Preventing Unauthorized Access Through Attack Simulation
Penetration testers use attacker-like behavior to detect weaknesses in access controls. They attempt:
- Privilege escalation
- Accessing restricted user roles
- Bypassing screens or features
- Manipulating tokens or app states
If they can access areas meant for admins or retrieve data from other users, it highlights gaps in authorization logic.
Outcome: Developers strengthen role-based access and add strict server-side validations.
6. Identifying Dangerous Logic Flaws
Logic flaws occur when an app’s workflow can be manipulated—often due to assumptions developers make. Pen testers review business processes such as:
- Payments
- Transaction flows
- Discount calculations
- Account upgrades
- Verification steps
They test if attackers can bypass steps, modify values, or abuse workflows for financial gain or unauthorized access.
Outcome: Business logic is fortified with server-side validations, making abuse impossible even if UI checks are bypassed.
7. Securing Third-Party SDKs & External Libraries
Most apps rely on SDKs for analytics, ads, payments, social login, or notifications. However, insecure or outdated SDKs can introduce hidden vulnerabilities.
Penetration testers audit:
- Data collected by SDKs
- Permissions requested
- Communication endpoints
- Patch and update history
- Potential for data leakage to unknown servers
They also flag libraries that are no longer maintained or contain known CVEs.
Outcome: Only secure, compliant, and updated SDKs remain part of the application.
Specific Data Protection Compliances That Indian Companies Must Follow
India has strengthened its cybersecurity and data protection landscape in recent years. For mobile applications, especially those handling financial, healthcare, or personal data, regulatory compliance is not optional. It is a legal requirement.
Below are the key Indian regulations that make strong data protection and regular penetration testing mandatory:
1. CERT-In Guidelines
The Computer Emergency Response Team of India (CERT-In) requires all companies operating digitally to follow strict cybersecurity practices. These include:
- Secure coding standards to reduce vulnerabilities in mobile apps.
- Strong encryption for data stored on the device and transmitted over networks.
- Multi-factor authentication (MFA) to protect user accounts.
- Regular Vulnerability Assessment & Penetration Testing (VAPT) to identify and fix risks before attackers exploit them.
CERT-In also requires organizations to report cybersecurity incidents within a strict timeline. This makes proactive testing even more important.
2. Digital Personal Data Protection (DPDP) Act
The DPDP Act is India’s personal data protection law, and it sets clear expectations for how companies should handle user data. Key requirements include:
- Consent management: Apps must take clear, informed consent from users before collecting personal data.
- Data encryption: Sensitive data must be protected at all stages: storage, transmission, and processing.
- Breach notification: Companies must inform users and the Data Protection Board of any data breach within a prescribed timeline.
- Huge penalties: Non-compliance can result in fines of up to ₹250 crore, making strong security a business necessity.
For mobile apps, penetration testing becomes essential to demonstrate compliance and avoid legal risks.
3. RBI Cybersecurity Framework
The Reserve Bank of India (RBI) has some of the advance cybersecurity rules in the country, particularly for:
- Banks
- NBFCs
- Fintech platforms
- Payment apps
RBI mandates:
- Regular penetration testing to ensure mobile banking apps are secure.
- Secure coding and encryption to protect financial data.
- Continuous risk assessments to detect evolving threats.
Apps dealing with money must prove they are safe before going live and stay safe through periodic testing.
4. IRDAI Guidelines
The Insurance Regulatory and Development Authority of India (IRDAI) requires all insurance companies and health apps they work with to follow strict cybersecurity rules:
- Annual VAPT to identify and fix vulnerabilities in mobile apps.
- Strong encryption for policyholder data, including personal and health information.
- Incident reporting within 6 hours of discovering a security breach, one of the fastest reporting requirements in India.
This ensures that sensitive health and insurance data remains protected at all times.
Real Data Breaches That Could Have Been Prevented
Many of the world’s biggest data breaches happened because of basic security mistakes, things that mobile application penetration testing could have caught early. Here are some real examples:
1. Uber (2016 & 2022): Leaks Caused by Exposed Credentials
Uber suffered two major breaches because login credentials were left exposed. In both cases, attackers found access keys and entered Uber’s internal systems. This allowed them to steal user and driver information. Proper security testing could have identified these weak points and prevented the attack.
2. British Airways (2018): Payment Data of 380,000 Users Stolen
A small piece of malicious code was injected into the company’s website and app. This script quietly collected customer payment details during checkout. If the app had been tested for script-injection risks and code integrity, the breach might never have happened.
3. Facebook (2019): Millions of Phone Numbers Exposed
Facebook stored user phone numbers on an unsecured server with no password protection. Anyone who found the server could access the data. A simple configuration check during penetration testing could have flagged this risk early.
4. The Bigger Picture: 94 Million Records Leaked in Q2 2025
Industry reports show that 94 million data records were leaked worldwide just in the second quarter of 2025. Most of these leaks were connected to insecure mobile apps, weak APIs, or cloud misconfigurations, issues that mobile app penetration testing is designed to catch.
How Peneto Labs Can Help Secure Your Mobile Application?
Peneto Labs provides high quality Mobile Application Penetration Testing designed to uncover deep vulnerabilities before attackers exploit them. Our experts specialize in testing Android, iOS, and hybrid frameworks, following globally recognized standards such as OWASP MASVS and MITRE Mobile ATT&CK.
About Peneto Labs
At Peneto Labs, we help businesses uncover hidden vulnerabilities inside their mobile applications before attackers do. Our team specializes in mobile application penetration testing, secure code reviews, API testing, and advanced security assessments designed for modern digital products.
We use industry-leading tools, real-world attack simulations, and a compliance-driven approach to ensure your app is not only secure but also aligned with global standards and regulatory requirements.
Whether you’re handling financial data, personal information, or high-risk business workflows, we help you strengthen your security posture with clear reports, actionable insights, and guided remediation support.
If you want to build safer, trusted, and resilient mobile apps, Peneto Labs is here to support your security journey every step of the way.
Conclusion
With mobile apps handling payments, personal identity, healthcare data, and financial transactions, the security stakes have never been higher. Mobile Application Penetration Testing helps you:
- Protect data and comply with India’s fast-evolving cybersecurity regulations
- Detect risks before attackers find them
- Maintain trust with your users
- Prevent revenue loss, reputational damage, and legal penalties
By simulating real-world attacks, pen testers reveal exactly how an attacker could break in and more importantly, how to stop them. This proactive approach ensures that sensitive information such as passwords, payment data, personal identity details, and session tokens stays protected.
When combined with strong encryption, secure coding, regular updates, and continuous monitoring, mobile penetration testing becomes a critical layer in a company’s overall security strategy, in addition to data protection strategy.
Partnering with Peneto Labs means choosing proactive protection, expert guidance, and long-term security for your mobile ecosystem. Book a FREE scoping call with us today!