7 Security Measures You Need to Know While Using E-wallets

E-wallets or Digital Wallets have skyrocketed in popularity in the past few years, especially after the Covid-19 outbreak as India was under complete lockdown and even consumers preferred spending less time in grocery stores, restaurants, and retail shops. While people are slowly coming back to normal, most of us still prefer digital payments for the convenience it offers. However, as we know, fraudsters constantly target digital wallets and other modes of digital payments for their own advantage by finding loose threads. So, the question arises, are the E-wallets secure? Can you protect your bank details, debit cards, and credit cards while using digital wallets?

Well, the answer to both the questions is "Yes". But, how?

Let's first see what E-wallets are:

E-wallets are software programs that are used for online transactions made through a computer, smartphone, or tablet. The E-wallet needs to be linked with the user's bank account. You can also link your debit cards and credit cards to your E-wallet. You can top up your E-wallet by the required amount through your bank account or cards and use it to make any transactions. If you do not want to load the money in your digital wallet, it allows you to directly pay from your bank account or debit/credit card at the time of the transaction.

In order to safeguard your E-wallets, it would help to know how they work:

There are several E-wallets you can choose from, such as Google Pay, Apple Pay, PhonePe, Dhani, Paytm, MobiKwik, etc. You can use E-wallets like PayPal for international transactions. These wallets work more or less in the same way. Once downloaded from the App Store or Play Store, you need to register by providing your personal details like name, contact number, email id, bank details, etc. and create a password.

You should know that Digital Wallets rely on proven security measures, such as Personal Identification Number (PIN) and Two-factor Authentication. They use encryption technology to access your financial data and passwords, which makes it difficult for hackers to access and decode your data. Hence, you can rely on the E-wallets with your personal and financial information as all the security measures taken by the E-wallets make this mode of payment more secure than using cash and debit/credit cards.

However, the fraudsters can take advantage when you lose your device (smartphone, laptop, etc.) or leak login credentials. In fact, most e-wallet frauds that happened in the past are done by someone the user had trusted and shared their sensitive information with. Therefore, as a user, it is your responsibility to follow certain security measures.

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Here are the security measures you should take while using E-wallets:

1. Never share sensitive data with anyone:

When you give someone access to your phone who knows your PIN, they can easily gain access to your financial information and can transfer money. Hence, it is advisable never to share your PIN or password with anyone unless you completely trust them. Most E-wallets have a feature 'Request Money' that has been largely used by fraudsters to their advantage. If you know the person who requested and the request is genuine, you can tap on the 'pay' option to make the payment. The fraudsters generally send such requests with a message indicating you will receive the funds in your bank account after entering the PIN. However, once you press the 'pay' option and enter your PIN, the money gets deducted from your account. Hence, you should always remember that you never have to enter the PIN to receive the money. Instead of simply ignoring such fraudulent requests, tap on 'decline' and, if possible, report the same.

Apart from this, having the same PINs and passwords for all your accounts can be dangerous. If someone gets the password of one of your accounts, they will be able to access all your online accounts.

2. Logout after every use:

If you use E-wallets and/or banking apps, you should always keep your phone locked when it is not in use. When your phone is locked and has a strong password, and even if it gets stolen or lost, there is less chance of fraud by misusing your personal data. Therefore, it makes sense to not use passwords or PINs that can be easily guessed by scammers. Your, your spouse's, or your child's date of birth or the last few digits of your phone number are some of the examples of PINs and passwords that can be easily guessed. Furthermore, there is a 'log-out' option in every E-wallet that most users do not know about. It is important to log out of your E-wallet after every use to ensure maximum security.

3. Use security apps:

App Store and Play Store have several security apps that let you locate your lost device and log out from all your accounts from the device remotely. You should activate such apps beforehand as it will prevent the fraudsters from taking advantage of the lost or stolen device.

4. Avoid accessing E-wallet through public Wi-Fi:

Avoid using Digital Wallets using public Wi-Fi or public computers at hotspots like railway stations, restaurants, cyber cafes, etc. If you have to use public Wi-Fi or computers, use Virtual Private Network (VPN) for secured transactions. You should be cautious when using E-wallets or making any online transactions in crowded places as fraudsters can be present anywhere, or even normal people can take advantage if they get to know your sensitive information. This way of stealing sensitive information without obtaining the victim's attention is called Shoulder Surfing.

5. Track your bank and credit card accounts periodically:

It is a good practice to keep track of your finances by periodically checking bank and credit card statements. It helps to know if there are any discrepancies in the transactions or the presence of unauthorised transactions. Once you come to know about the fraudulent transactions in the account, you can file a complaint to the concerned authority. You are required to inform about the unauthorised transactions to the concerned authority at the earliest to ensure the necessary action is taken and you may get a refund. Besides, tracking your financials also helps in money management and trim unnecessary spending.

6. Beware of counterfeit apps:

Fraudsters create counterfeit E-wallet apps that look very similar to authentic apps. While downloading the app from the Play Store or App Store, you have to be very careful. Counterfeit apps can steal all your personal data not only from the app but also from the device. Once the fraudsters gain access to your sensitive data, they can transfer funds from your account, blackmail you, or use the data for any illegal purpose. Modi BHIM, BHIM Banking Guide, BHIM Payment UPI Guide, etc. are some of the reported fraud apps you should be aware of.

7. Limit your top-ups:

Make it to the point to check your wallet transactions just like you check your bank and credit card statements. This will help you identify if there is a fraudulent transaction. You should never ignore transaction SMSs on your phone. It is also a good idea to limit the top-ups in your Digital Wallet to ensure you lose the minimum amount in case the fraud takes place.

To Conclude...

While E-wallets take all the necessary measures to ensure the security of your personal and financial data, it is our responsibility too to do our part. Following these simple and proven security measures will ensure you do not become a victim of E-wallet fraud. For added security of all your financial and personal information, it is advisable to install trusted antivirus software and renew it timely.

Warm Regards,
Ketki Jadhav
Content Writer