An electronic wallet aka digital wallet is an electronically operated application that allows easy payments for just about anything with a financial instrument naming debit card, credit card, net banking etc. using phones specifically or laptops.
A spectrum of e-wallets are available today in the mobile world, and can be easily downloaded on the app store to support point of sale transactions and one on one transactions. Used for the comfort of individuals, mobile wallets can be conveniently made regular over traditional methods of payment.
Plenty of security concerns hover over the digital wallets owing to its technical nature and operational vulnerability. The condition to which people use digital wallets is the convenience that it extends instead of using traditional wallets in terms of manageability of the accounts, discounts & offers, other relevant information, permitting access through appropriate usernames and passcodes.
Digital wallets generally use the right authentication, monitoring and data encryption to secure your personal data. A number of personal identifiable information customer card numbers, secret PIN, net banking credentials etc. needs to be protected against any hacks, requiring just final authorization from the user through means like biometrics authentication, one-time passwords(OTP) etc. The entire process involves strict security measures like certificate pinning and use of encryption.
Highlighted below are some Security Threats to Digital Wallets:
- Impersonation & SIM swapping
Impersonating is the act of stealing personal information by parading as someone else and using the stolen e-wallet details and password for a transaction.
The fraudster gathers SIM and uses the user information to make fake transactions
- Malware Attacks
Applications affected by malware attacks impact the security of unique user’s money and fetches details from his phone and embezzles it.
What could be the best practices for users to remain safe? Below are a name few.
- Activate Passwords On Devices: Passwords are an absolute essential at electronic gadgets like user’s phones, tablets, and other devices. Many layers of security are required for highly technical devices.
- Use Secure Networks: Only secure networks should be brought to use to avoid any unwanted activity. Do not use publicly run networks to invite other damage whatsoever? Avoid the public use of Wi-Fi networks.
- Install apps from Trusted Sources: Reviews help to a greater extent in hinting about good and trusted sources from where you should download the e-wallet. Reviews by users help to know the back stories of the app and its creditability.
- Take care of your login credentials: Do not reveal your login credentials in a public forum for unauthorized access to your system and e-wallet accounts.
- Update a unique password for your Digital Wallet: Login a unique and strong password for your digital wallet to avoid any risk of authorized access.
- Identify Signs of Suspicious Activity: Any suspicious activity happening on behalf of the users’ account needs to be checked and acted upon every now and then like phone getting stolen or account being hacked needs to be resolved at the earliest.