Executive Summary- The Indian economy is surging forward towards a digital economy. While this is advantageous, there are risks that we need to be aware of. All forms of digital transactions like usage of debit and credit cards, online shopping and mobile wallets are vulnerable to cyber attacks. Follow safe and secure cyber practices to prevent cyber crime and online fraud. These practices include strong passwords, use OTP and install anti-virus software on all devices, One should check transactions regularly, not use public internet for financial transactions and delete login credentials once the transaction is done.
India is en route to a digital economy, a cashless economy. Post the demonetization, there has been a surge in the usage of cashless payment methods. People, be it a vegetable vendor, rickshaw driver or a manager in an MNC, are adopting these methods all across the country.
A digital economy offers many advantages –
A digital economy offers many advantages –
- Transactions can be tracked which makes It difficult for illegal cash receipts and payments.
- People do not have to carry a lot of cash which reduces risk of loss and theft.
- People will become digitally literate.
- There will be no problem of change and exact amounts can be paid.
- Currently there are discounts and incentives on various digital transactions. One can take advantage of these incentives.
On the other hand, there are some risks involved in digital payments. People are vulnerable to cyber crime, cyber attacks and online fraud. There are malware and ransomware that attack your smartphones, handheld devices and computers. People get trapped due to phishing.
Financial institutions and digital payment companies take precautions and security measures. The government will also have to strengthen cyber laws.
But as individuals we need to be aware of the risks, take precautions and conduct transactions securely.
Let us look at different payment modes, their vulnerability and how we can protect ourselves –
Financial institutions and digital payment companies take precautions and security measures. The government will also have to strengthen cyber laws.
But as individuals we need to be aware of the risks, take precautions and conduct transactions securely.
Let us look at different payment modes, their vulnerability and how we can protect ourselves –
1) Point-of-Sale (POS) Machines that accept debit and credit cards
How they can be hacked –
How they can be hacked –
- When the card is swiped, unauthorized POS machines can copy the details of the cards.
- Devices that have been doctored can replicate cards.
- The network that PoS devices use can be hacked to steal information.
How to Protect Oneself –
- Shop with credible merchants.
- Check your account balance and transaction history. Report to the bank immediately, if there is anything suspicious.
- If you will use your card abroad, inform the bank about the same with details like location and travel schedule.
- Set up mobile/ email alerts for transactions.
- Destroy old cards as soon as you receive new ones.
- Keep your contact details updated with the bank so that the bank can notify you of suspicious transactions.
- Keep the hotline/customer service number of the card handy to call immediately in case your card gets stolen.
Better to be safe than sorry in the digital world
2) Online Transactions
How they can be hacked –
How they can be hacked –
- Card details saved on e-commerce portals can be stolen in case of a security breach at the portal’s end.
- E-commerce websites are vulnerable to cyber-attacks. Hackers can get your personal details and payment details which can be used to harm you.
How to Protect Oneself –
- Avoid using public wi-fi networks for monetary transactions.
- Do not save card details online. Ensure you delete them.
- Some websites (foreign ones) allow you to skip the security step of OTP. Do not skip the step. Avoid transactions on websites that do not ask for OTP.
- Transact only on well-known and credible websites.
- Set up mobile/ email alerts for transactions.
- Use websites that offer security layer. Look for ‘https’ in the URL.
- Check if the lock icon is present in the browser while transacting on the website.
- Use different passwords for netbanking and other social websites.
- Change your passwords frequently.
- Check your account balance and transaction history regularly. Report suspicious transactions to the bank immediately.
3) E wallet payments, mobile wallets
How they can be hacked –
How they can be hacked –
- Vulnerable to passwords being stolen.
- Lack of transaction authentication can lead to fraudulent transactions.
- If the phone is hacked via the mobile wallet, all other sensitive information can also be stolen.
- Fake applications downloaded, social media engineering and spyware installed on the phone unknowingly can steal all your information.
- E-wallets allow one payment for multiple transactions. The hacker who has your identity may make transactions without you knowing and you will be charged. If you are not careful about the amount, you will realise very late.
- SIM swap is a process where your SIM card is blocked by the hacker. Then he gets a replacement SIM and uses the SIM and One Time password to transact as he pleases.
How to Protect Oneself –
- Do not store credentials online.
- Use a mobile wallet that offers multiple security layers like
- Transaction Limit
- SSL technology
- Insurance
- Device and ID checks
- Some mobile wallet companies are working on facial recognition and fingerprint security measures. You should select one with maximum security.
- Passwords for digital wallets should be different from other passwords and be strong.
- Log out of digital wallets after completion of transaction.
- Install and update antivirus software on the smartphone.
- Download apps only from trusted sources.
Digital transactions provide lot of advantages. Everyone has to work in conjunction to make them safe and secure. The government should implement a strong cyber law framework that gets updated regularly with technology updates. The companies and banks offering the facility should have strong security measures. People should practice safe and secure cyber habits.
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