Digital payment providers risk being hacked

The data security experts warn that with an ever-increasing number of people using digital payment services to make payments online, the amount of potential hacking targets has increased exponentially. They believe that upgrading the security is the only way to protect end-users from being victimised by hackers.

Typically, people use digital payment services to pay for a plethora of things, from groceries to local travel.

Paytm, India’s largest m-wallet, registered over 7 million transactions in a single day. These transactions are worth over Rs 1.2 billion. Since the country began the demonetization process, an increasing number of merchants and consumers have begun to choose mobile payments as their preferred method of payment.

Potentially, hackers could try to get their hands on your e-wallet money by creating multiple fake accounts to collect small amounts of money by cheating people through psychological manipulation, as well as breaching servers and stealing data.

According to Vidit Baxi, Technology director at Lucideus, e-wallets are at greater risk than ever. According to him, it is about managing the risk, and there is no such thing as 100% security, since even the world’s largest banks have been digitally hacked.

It is important for e-wallet companies to follow the latest data security standards. They must tokenise user credentials, and they must be encrypted and authenticated well before the actual transaction happens.

Amit Nath, head of Asia Pacific F-Secure, believes the key lies in educating people on how to use a technology, use of a good antivirus on mobile devices, as well as using Wi-fi protection and anti-malware.