Digital Wallet Do's and Don'ts: When Your Online Finances Are Secure?

Last updated: August 17, 2023 Reading time: 3 minutes
Digital Wallet

Digital wallets are increasingly being developed to perform more than just monetary transactions; they are also designed to authenticate the holder’s credentials.

A digital wallet, alternatively referred to as an e-wallet, is an electronic device, internet service, or software application that enables one party to conduct electronic transactions with another party in exchange for digital currency units.

This approach can include shopping online with a computer or utilizing a smartphone to make in-store purchases. Users can transfer funds into a digital wallet before any transactions, or in some situations, they can link the digital wallet to their credit card or bank account.

Are Online Transactions Putting Your Security at Risk?

Without question, digital wallets have gained popularity globally and are projected to replace cash as the primary form of payment. As millions of people increasingly rely on modern conveniences for payment and account access, and as cybercrime grows, e-wallet security becomes more essential.

Keeping data secure is not always as simple as creating clever passwords in our digital age. Experienced thieves and hackers often bypass these checks entirely. Fortunately, there are methods for safeguarding your digital wallet and ensuring that you may access it when necessary. The following are a few strategies for staying safe.

Avoid uninvited connections. A friend’s phone may be infected with malware, sending you texts to infect everyone in your contact list. Even if a source appears familiar, exercise caution if you think a friend sent you a link or text, and ask about it before clicking.

Sidestep Public Wi-Fi

Avoid accessing public Wi-Fi to view confidential information or surf websites that capture and keep your data. It’s best to avoid using public Wi-Fi at parks, libraries, and cafés unless you want someone other than you to monitor your bank account.

Read the Fine Print

Apps increasingly use GPS data to establish where you live, eat and shop. Additionally, they have access to your calendar and contact list. Avoid downloading apps without reading the fine print.

This access is accomplished through “terms of service” agreements that most users accept without reading. Although they are frequently complicated and challenging to comprehend, you should not download the app if you disagree with the terms.

Use Two-Factor Authentication

You should check if your accounts enable two-factor authentication (2FA) if you haven’t already. It is a highly effective means of stopping unauthorized users from accessing an account.

With typical 2FA, when you enter your standard password, the website sends a four- to six-digit code to your e-mail or phone. This strategy creates two obstacles for hackers and will notify you if your account is compromised.

Employ a Security Service

A security service like LifeLock guards your credit and finances against identity theft and fraud. Of course, not everyone is equally vulnerable to identity theft. Individuals with a busy travel schedule may require a different level of protection than those concerned with online shopping or everyday encounters. Services like LifeLock make it simple to select the plan that matches your lifestyle and online activities the best. 

If you want to regain peace of mind concerning your digital wallet, these best practices will help keep you safe from cybercriminals.

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About the Author

Rebecca James is an IT consultant with forward thinking approach toward developing IT infrastructures of SMEs. She writes to engage with individuals and raise awareness of digital security, privacy, and better IT infrastructure.

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