The digital payment ecosystem has certainly been growing at a rapid pace in recent years. And the global pandemic has also played its role in fast-tracking the adoption of digital wallets and online payment methods across various user segments.
According to a report by KPMG, countries like India are expected to witness a 78 % increase in digital payments in the upcoming months. An increased number of users, even those living in non-metro cities have started to make the shift to cashless transactions methods such as UPI (Unified Payments Interface), digital wallets, Internet Banking, and more.
However, as we gravitate towards a world of digital payments and e-wallets, it is important to be aware of the challenges that come along. One of the biggest challenges when it comes to digital payments and wallets is security.
That is why it becomes a must for consumers and businesses to remain vigilant and take the required steps to ward off the potential threats. So, let’s take a look at some of the established best practices which massively enhance the security of your digital wallets and payments.
Here are 7 important tips to keep in mind for enhancing your digital wallet security
1. Enable Passwords On Your Devices:
Enable passwords on your phones, tablets, and other devices before they can be used. Use the benefits of additional layers of security provided by these devices. You can use password managers to create strong and unique passwords. Adding two-factor authentication to your device and app security will give another major boost to your already secure device.
2. Use Secure Network Connections:
Always be aware of the kind of networks you are connected to. It's important to be connected only to those networks which you can trust. Avoid the use of public Wi-Fi networks. More secure WiFi connections require passwords and are easily identified as “WPA or WPA2.” Highly-insecure WiFi is wide-open for anyone to connect to and may be labeled as a “WEP” connection.
3. Install Apps From Sources You Trust:
Apps are not always what they appear to be. In fact, you could be getting more than you bargained for. A free game might not be just a game, but an app designed to illicitly collect personal data from you. Reading the user ratings and reviews can provide some clues about the integrity of the app.
4. Keep Your Private Stuff Private:
Never share sensitive data with those you don’t trust. This includes when you respond to email requests, phone inquiries or allow control to anyone you would not normally hand over a physical wallet to. Financial service providers and support staff will never ask for private information such as passwords or payment account numbers.
5. Keep Login Credential Secure:
Avoid writing down information used to access the digital wallets in plain view or storing in an unprotected file. Easy access to them might result in the misuse of your data and credentials. It is essential to store passwords in a way that prevents them from being stolen by an attacker even if the source application, device or database is compromised.
Now, there are several frameworks and apps also which provide built-in functionality to help store passwords safely.
6. Create a Unique Password For Your Digital Wallet:
Avoid using the same password you use for email or social networking sites. This increases the risk of unauthorized access. Instead, use an easily- remembered, yet hard-to-guess password unique to your digital wallet. This will enhance your digital wallet security.
7. Identify Who To Contact If There Are Issues, Before One Arises:
Ensure that you understand the quickest way to resolve any issues that arise and who is responsible for any fraudulent activity on your account. Some common scenarios to consider - your phone is lost or stolen, an individual card stored in the wallet is lost, your account has been or may have been hacked.
It is clear that as technology advances, the need for improved security for digital payments is also increasing. And as the rewards of digital payments outweigh the risks, it has become imperative to create a highly secure and efficient digital payments ecosystem.
The above-mentioned steps can not only reduce the underlying risks in digital payments for you but also save you from data and monetary loss. It is also expected from the fintech players that they will work towards the betterment of digital wallet security, making it an inseparable aspect of our lives.