Bharat SainiLast Updated on February 27, 2017 by Bharat Saini
If the benefits of digital payments are exponential, so are the risks. Online banking users are targeted by skimmers, phishing, ransomware and info-stealing trojans, eScan. Increase in use of mobile and unified payment options in consequence of demonetisation has thrown new opportunities for cyber criminals to exploit the unsuspecting and illiterate masses. As customers increasingly depend on digital money mitigating cyber security risks has emerged as a major challenge for the Bankers who must upgrade and fortify their cyber defences.
There are certain risks unique to e-payments, such as the one on losing mobile phone. In this device related risk if there are no passwords protecting the phone or the app, money in an e-wallet could be compromised. Then there is the risk from rights access. Connecting the e-wallets or other fintech apps with other apps like social networks could pose a risk of data leakage or a consumer unknowingly sharing information that should have been kept private. Negligence in sharing passwords or OTP (one time passwords) with others especially when using these modes publicly is third important risk. There are some other risks that are common to e-payments as well non-electronic payments, for example, giving away your account details to a third party. Downloading unverified apps and software can the other security risk. There is no certainty that when you download a mobile banking app, it is using hardware security or not.
Users should download apps with high ratings.
Banking portals are also prone to cyber security risks. While banks have to regularly update software and fraud detection systems, users should be aware of basics like changing passwords frequently, using unique passwords for different accounts on every website. Password should not be the same for net banking, facebook, twitter.
However, the benefits of electronic payments far exceed the inconvenience and transaction costs are much lower in comparison to costs in other forms of payment, especially when the payment ticket sizes are small, provided the consumer takes basic precautions to save from Cyber Criminals, such as the followings:
- Treat you smartphone as a bank.
- Operating systems, apps & antivirus must be kept up to date.
- Enable two-factor authentication.
- Beware of links ar attachments from unidentified sources.
- Monitor your accounts for unauthorized transactions.
- Accounts, card or financial and personal should be avoided on emails.
- Click the lock in your browser to ensure that your connection is secure and that your are connecting to the right organisations.
With demonetisation digital payments have got a fillip and as hackers attempt to siphon off money from banks or steal credit/debit card details, PINs, mobile wallets, success of transition to less cash economy will depend on bankers upgrading and fortifying their cyber defences.
