As smartphones increasingly become an indispensable financial tool for consumers' financial lives, their value to fraudsters has risen accordingly, reveals a new study by Javelin Strategy & Research.

Although mobile malware has yet to become a pervasive threat in western markets, it has created chaos in China and India, according to the firm's 2017 Mobile Banking Malware Report.

The report explores the need for financial institutions to begin securing their apps before the threat of mobile malware migrates to Western markets.

Malware developers have worked to circumvent the most prevalent forms of authentication used by financial institutions in the U.S., including passwords, security questions, and SMS-delivered temporary passcodes, Javelin said.

"The growing prevalence of mobile banking, mobile commerce, and financial activities such as person-to-person payments offers fraudsters rich opportunities for phishing login and payment credentials," said Al Pascual, Javelin senior vice president, research director and head of fraud and security, in a release. "As financial institutions reduce reliance on passwords, the smartphone is fast becoming the new authentication nexus. In response, malware is evolving to target and overcome mobile channel authentication."

The 2017 Mobile Banking Malware Report is based on information collected in a random-sample panel survey of more than 5,000 consumers in November 2016.