Do you use a digital wallet? Know the risks

Digital Wallet: In today’s digital world, most people have shifted to online activities. From making payments to filling out application forms, most tasks can now be done online. People frequently make online payments. There are numerous online payment apps available today that offer a digital wallet option; here, funds are deducted from the app’s wallet rather than directly from the bank account. However, with advancing technology, the risk of cyber fraud has also increased significantly. This raises the question: is using a digital wallet entirely safe? Let’s explore the potential risks associated with digital wallets.

What is a digital wallet?

Essentially, a digital wallet is an app or online system that uses payment-related information digitally. Payments are made by linking bank accounts, cards, or other payment methods to the wallet. Users do not need to take out cash or a card for every transaction.

However, digital wallets and UPI are not the same thing. While UPI facilitates direct payments from a bank account, a digital wallet holds funds within the app itself, which can be used elsewhere later.

Beware of fake customer care

People often search for digital wallet customer care numbers on the internet and end up calling fake numbers. They are often unaware that the person they are speaking to is a fraudster, not a genuine customer care representative. Under the guise of resolving an issue, these criminals may ask for an OTP, PIN, or request that the user share their screen. Remember, you should never share your OTP, UPI PIN, password, or card CVV with anyone.

The risk of phishing and fake links

It is worth noting that cyber fraudsters have become quite sophisticated. Digital wallet users have now become prime targets for phishing attacks. Cybercriminals send messages posing as representatives from banks, digital wallet companies, or customer care departments.

These messages often ask you to click on a link, update your KYC, or verify your account. Providing information via such links allows fraudsters to access your passwords, card details, and other sensitive data.

Risk increases if the phone is stolen

The risk escalates if a smartphone containing logged-in digital wallets or payment apps is stolen or lost. A weak screen lock makes it easy for someone to access your apps; therefore, using a strong PIN or passcode is a much safer option for users.

How ​​to keep your digital wallet secure?

Taking a few simple precautions while using digital wallets can help you avoid significant financial loss. Always keep your apps updated, enable a screen lock on your phone, and avoid clicking on suspicious links. Do not install remote-access or screen-sharing apps at anyone’s behest. Additionally, keep an eye on alerts from your bank and payment apps, and immediately contact the relevant bank if you notice any unfamiliar transactions.