A fraud overlay is a fake form or dialog drawn on top of a legitimate app to trick users into entering sensitive data such as passwords, PINs, one-time codes, or card details. Because the real app remains visible underneath, the prompt can look convincing and feel like part of the normal session.
Fraud overlays matter because they let attackers capture credentials at the exact moment a user is authenticating or approving a payment. In mobile attacks, malware can abuse overlay permissions or accessibility features to place these screens over banking apps, often after the victim opens the app. Defenders look for unusual overlay requests, suspicious UI behavior, and app policies that block overlays on high-risk screens. Anti-overlay controls, user education, and device-risk checks help reduce the chance of session hijacking and credential theft.