Digital wallets depend on established security mechanisms such as two-factor authentication and unique PINs. Wallets use encryption technology to scramble users’ financial and password data. This makes it more challenging for hackers to intercept this information when users of digital wallets do transactions.
Using digital wallets and the applications that support them is probably not riskier than buying with credit or debit cards. But you should also be cautious; thieves may still exploit your digital wallets, especially if you lose your smartphone or any other connected device.
To safeguard yourself, you should first lock your phone using a password, swipe code, or biometric verification. This last option is the most secure: To unlock your phone, you must touch your finger against it. Or maybe your phone requires facial recognition before unlocking. With this security, it is significantly harder for criminals to access your phone.
If you use a password to unlock your phone, ensure that it is tough to guess and involves a combination of letters, numbers, and symbols. The more challenging it is for a hacker to break a code, the more complicated it is. If you are utilizing a swipe code, you should never swipe it in public. You never know who may be viewing your code and remembering it.
Install security applications on your smartphone that might help you find it if it is stolen or misplaced. These security applications also allow you to lock your phone or delete any stored login credentials remotely. Make use of these attributes. If you cannot locate your phone, you should ensure that whoever finds it cannot access its financial data.
Additionally, be cautious about where you utilize your digital wallet. Never use it or pay applications on a public Wi-Fi network. Hackers might easily compromise these accessible Wi-Fi networks. Cybercriminals with expertise may be able to monitor your online activities, including any payments you make.
Finally, often access your online credit card portals and bank accounts. Examine the list of transactions, payments, and withdrawals for indications of questionable behavior. If you notice unauthorized transactions or withdrawals from your account, a criminal may have obtained access to your finances. Report these unusual transactions immediately to your bank or credit card company.
Below is an infographic from LoginID entitled “Why Crypto Exchanges, Digital Wallets, and NFTs Need to Increase their Security Measures.”