An electronic version of your traditional wallet simplifies and fastens the payment process. Now, you can store, send, and receive money anytime and anywhere. However, the risk of online threats looms while using e-wallet apps like any other digital product or service.
According to the Federal Trade Commission data, consumers lost over $10 billion to scams last year. Hence, protecting your digital wallets is a way forward for a safer payment experience.
Three Common Digital Wallet Threats
First, let’s check out some common risks for e-wallet app users.
Malware Attacks
One of the most prevalent threats for digital wallet users. In this, cybercriminals infect mobile devices with malware to extract financial data directly from a person’s e-wallet app.
Hackers use malware attacks to execute unauthorized actions on the victim’s phone. It includes ransomware, worms, trojans, spyware, adware, and fileless.
Phishing Scams
Phishing is another popular scam that tricks you into opening emails or messages from unknown sources. For instance, you’ll click an email offering a bonus on a new casino site. If clicked, it’ll redirect you to fishy sites to steal sensitive data.
So, always check the sender’s authenticity before initiating transactions through online reviews. You’ll find online forums that add detailed reviews of casino sites with a 100% credibility stamp, such as Ducky Luck Casino legit. Besides, look for red flags within the email message, such as spelling mistakes or urgent language.
Man-in-the-middle Attack (MitM)
Consider the man-in-the-middle attack an eavesdropping. Also known as a monster-in-the-middle, it’s a serious online threat that aims to steal and manipulate sensitive personal data like account details, login credentials, or credit card numbers.
If you transact outside using a public Wi-Fi network, you may be at risk for MitM. Bad actors secretly intercept communication between users’ devices and payment terminals, tricking the server and the user into believing they are exchanging information. So, never use your digital wallet on public Wi-Fi.
So, how can you protect your mobile wallets against malicious actors and online vulnerabilities? Here are some practical options.
Password Setting Etiquettes
This is obvious but essential. Always use strong passwords containing symbols, numbers, and lowercase and uppercase letters. The goal is to create a difficult-to-crack password to prevent the risk of unauthorized access.
Next, remember to update your passwords regularly. A rule of thumb is to change your e-wallet password every 90 days.
Sharing your personal information and digital wallet credentials via texts, emails, WhatsApp, phone, or on suspicious websites is also a strict no-no.
Two-factor Authentication
Enabling two-factor authentication on your e-wallet app can add an extra layer of protection. As the name indicates, the two-factor authentication feature requires users to complete the identification process twice. Hence, you’ll set two separate authentication factors to secure and use your digital wallet account.
Generally, there are three types of authentication options, which include:
- your password or PIN (personal identification number),
- an SMS or email OTP,
- biometrics like face, fingerprints, or voice recognition.
You can combine two verification options. This advanced identity verification system provides a safe gateway to confirm identity before using your e-wallet account.
Even if your primary password is compromised, only you can access your account and sensitive financial information. Besides, if your wallet is stolen, no one can use it due to biometric authentication.
Keep the Wallet App Up-to-date
Often, bad actors exploit gaps in outdated app versions to inject malware and steal sensitive data. Hence, software updates aren’t merely about improving its functionality. Regularly updating software will even protect user data from online threats.
The latest app version includes timely stability and security fixes. With the security patches in place, hackers will find it challenging to exploit vulnerabilities in the wallet.
Safe Online Payment Habits: Ideal Practices
As an adage goes, prevention is better than cure. So follow these tips rigorously to avoid any risk of scams.
- Use digital wallet apps with built-in encryption feature that protects sensitive user data from online breaches.
- Never download e-wallet apps from third-party platforms.
- Avoid using the same passwords for all your digital wallet accounts.
- Regularly track your wallet account’s transaction history and balance to report any fraudulent activity promptly.
- Set up alerts for account changes and payment processes to identify unauthorized activities instantly.
- To initiate payments via wallet only on reliable platforms, check for “HTTPS” or a padlock icon before the site’s URL.
- Don’t share personal and financial details with strangers online.
- Stay informed about the latest scams and cyber-attacks.
FAQs
1. What is the finest and most secure digital wallet?
Paypal, Venmo, Google Pay, Apple Pay, and Skrill are the safest options in the market.
2. How can I protect my e-wallet?
Strong passwords and enabling biometrics are crucial to protecting your e-wallet. Further, keep your app updated to avoid security breaches. Staying up-to-date about the best safety practices and the latest online threats will help you stay on your guard.
3. What is end-to-end encryption?
It’s a technology that encrypts all data transmitted through the platform to secure it from unauthorized third-party access. Simply put, this security method keeps your communications secure when you use digital wallets.
Wrapping It Up
As the payment systems evolved, so did the cybercriminals. Similarly, it’s your turn to take your digital wallet security up a notch.
Today, using mobile wallets is the norm. To protect your e-wallet account and sensitive user data from bad actors, follow these online safety measures. So stay informed and proactive!
