Digital wallet abuse is on the rise – How can you stay safe?

Digital wallets are fast, reliable and secure, so it is little wonder that they are being embraced by more people.

However, criminals are not ignorant of the expanded use of digital wallets and are increasingly targeting the system to prey on the vulnerable.

Individuals and businesses alike need to be aware of the heightened risks of using digital wallets so that they can avoid the common traps and assist others with the same.

How do criminal networks exploit digital wallets?

The old requirements of keeping your bank card information safe and confidential have become more important as digital wallets allow for ongoing exploitation of unprotected cards.

Criminals can add you card details to their Apple Pay and Google Pay accounts without your knowledge provided they have the correct information.

From there, they can freely use your bank card and it is only by checking your own bank account that you will notice the fraudulent transactions.

Historically, card details were acquired by peering over shoulders at cash machines, but the level of sophistication has increased alongside the risk.

Criminals seek to exploit the verification process that links a card to a digital wallet and will endeavour to secure any One-Time Passcode (OTP) needed to authorise the addition of the card.

They will use methods, such as phishing, malicious online adverts, social media content and social engineering, to manipulate unsuspecting victims into providing OTPs.

These are the same methods that will likely be deployed to gain the card information needed to enact the scam in the first place.

With both the card details and the OTP, the criminal is then at liberty to use your funds as they please.

How can digital wallet fraud be countered?

Knowing the ways that criminals seek to gain access to sensitive information allows you to remain vigilant in the face of any suspicious requests.

An additional step that you can take is to forgo the use of SMS for OTPs.

SMS is not a very secure form of communication and criminals can see it as an opportunity to obtain all the information required most typically through social engineering or by SIM swapping.

When SMS is not used to provide OTPs, there is a notable reduction in the presence of digital wallet abuse.

As such, you should consider finding alternative methods of obtaining OTPs to ensure that your data is protected.

We care about the safety and security of our clients and are continually working to raise awareness of cybersecurity best practices.

Our expert team can help you protect your finances from those who mean you harm.

Use digital wallets with confidence by speaking to our team today!