Analytics  |  Expertise  |  Technology   |   12.05.2023

Securing Your Digital Wallet (Best Practices for Keeping Your Funds Safe)

As the world is becoming more digitized, it’s transforming every single aspect of our lives. From remote jobs to online shopping, digital technology has revolutionized the way we live.

With this digital transformation, we now have the convenience of making cashless financial transactions using digital wallets (also called eWallets). Not only does it eliminate the need to carry cash, but it’s also faster than fumbling for loose change in your hard wallet.

But when it comes to securing your eWallet, you cannot be too careful. The Internet has all types of cyber criminals who are always attempting to steal your personal and financial information, and it’s not like you can take them to a small claims court to get your money back.

That’s why we’ve compiled this guide, containing the best practices that will help you keep your digital wallet and funds safe.

Read also How to integrate digital payments into your eCommerce business.

Why Do You Need to Secure Your Digital Wallet?

Digital wallets are becoming increasingly popular and according to recent statistics, more than 60% of the world’s population will be using them by 2026.

But it’s important to note that the number of cyber criminals targeting digital wallets is also increasing. They now use highly sophisticated cyberattacks to crack passwords and steal sensitive information of users like debit/credit card details and PII (Personally Identifiable Information).

Losing this data to a cybercriminal can lead to devastating consequences, as they can use it to commit fraud in your name and/or steal your money. Therefore, every digital wallet user must take security measures to protect their funds.

Best Practices to Secure Digital Wallets

Now that you understand why securing your digital wallet is important, let’s discuss the best practice that will help you keep your wallet safe.

Buy a Secure and Reliable Digital Wallet

Using a reliable and secure digital wallet platform is the first and most important step to keeping your funds safe. Make sure that you perform comprehensive research and choose a reputable provider with a proven track record of protecting their users’ data.

Look for a service that uses advanced encryption technology to secure user transactions and personal information. Don’t opt for an unknown eWallet service, no matter how affordable it is.

Use Strong and Unique Passwords

A strong and unique password acts as the first line of defense of your eWallet to protect your funds. It makes it difficult for malicious online actors to crack your digital wallet’s password to access your sensitive information.

Recent statistics show that 80% of data breaches take place because of weak or reused passwords. So, always set a strong password for your digital wallet using the tips listed below.

  • Use a combination of numbers, special characters, and uppercase and lowercase letters in your password.
  • Avoid using easily guessable information, such as your first/last name, birth date, home address, or pet’s name.
  • Use a long password that contains at least 16 characters.
  • Don’t reuse the same passwords for multiple accounts. If a hacker gains access to one of your accounts, they’ll also try to use it for the other ones you may have.
  • Change your passwords regularly, at least after every three months, to prevent unauthorized access to your accounts.

You can also use a password manager to create and store your eWallet passwords. Not only does it allow you to create a unique and strong password for each of your accounts, but it also enables you to manage all your passwords in a single place that’s fully secure.

Utilize the Power of MFA (Multi-Factor Authentication)

MFA is an advanced security technique that requires you to provide at least two forms of identification before gaining access to your online accounts. 

For example, after entering your password, you’ll need to enter a code sent to your mobile phone or answer a security question that only you know about. It adds an extra layer of security to ensure that only the owner can access a digital wallet.

This way, even if someone knows your password, they won’t be able to access your funds. This added security layer allows you to reduce the risk of unauthorized access to your eWallet significantly.

Invest in a Dark Web Scanner

A dark web scanner can protect you from cyber criminals who are trying to steal your financial information. It scans the dark web to see if any of your credentials have been compromised in a data breach.

The best thing about this tool is that it works in real-time and alerts you through notifications if your account is compromised. It allows you to take immediate action to protect yourself and your financial information.

Use a Secure Internet Connection

When using a digital wallet, it’s important to make sure that you’re connected to a secure internet connection. Never use public Wi-Fi networks to make online transactions because cyber criminals use them all the time to intercept sensitive information.

But if you really need to use public Wi-Fi while accessing your digital wallet, consider installing a VPN on your mobile device to encrypt your internet connection.

Tighten Up Your Email Security

Many cyber criminals use emails to launch phishing attacks in order to steal passwords and/or financial information. So, you need to tighten up your email security using the following tips.

  • Only Open Emails from Trusted Sources: If you receive an email from an unknown sender, be cautious before clicking any links or downloading attachments.
  • Check Security Certificates: When an email redirects you to a website, check its security certificate and make sure it’s valid and matches the website you were expecting to reach.
  • Be Extra Careful with Financial Emails: If an email is about your finances, read it carefully after determining that it’s from the legitimate sender. Plus, never share your personal information unless you’re sure it is safe to do so.
  • Use Strong Passwords: Use a strong and unique password for your email account that is not used for any other accounts. Enable two-factor authentication to add an extra layer of security.
  • Check email encryptions: If the email domain is legitimate it will have email security protocols like DMARC and SPF enables. Check DMARC record to avoid phishing or impersonation attack.

Keep Your Device Clean

Keeping your devices clean is another important factor in protecting your digital wallet. Never install any app without reading its reviews because it can be harmful. Even legitimate software can come bundled with additional software and plug-ins that can be a threat to your device’s security.

Always use a reputable antivirus program and malware scanner to detect and remove any potential threats.

Additionally, it’s also important to use reliable sources, such as Play Store and App Store, while installing new apps. It’ll help you reduce the risk of malware and other security threats that can make your eWallet vulnerable.

Keep Your Device Locked All the Time

It’s important to use the built-in security features of your device, such as passcodes, fingerprint scanning, or facial recognition, to keep it locked all the time. You should also use the same features for your eWallet and other apps that contain private data.

This way, if your device falls into the wrong hands, a thief won’t be able to access your digital wallet or other sensitive information. Additionally, never share your credential with anyone, even your family or friends, or leave your device unlocked and unattended.

Monitor Your Financial Transactions

Most financial institutions offer real-time messaging services to let you know about all the activities related to your financial accounts. Make sure that you utilize this service to monitor transactions made through your digital wallets.

It’ll help you stay on top of your account activity and quickly identify any issues that may arise. Don’t forget to contact your financial service provider if you detect any suspicious activity.

Keep Everything Updated

Companies release new versions of their software to patch vulnerabilities and fix bugs that hackers can exploit. Install these new updates as soon as they’re out, especially for apps and software that you use to manage your finances.

It’ll help you stay confident that any security issues have been addressed and your digital wallet is as secure as possible.

Read more about the Digital wallet trends in 2023.

Final Words

A digital wallet makes for a convenient and secure way to manage your finances and make online transactions, but it’s essential to keep it safe.

Hackers and other cyber criminals are always trying to find new ways to steal your financial data or personal information to commit fraud, and it can have dire consequences. Therefore, it’s important to use a holistic security approach to keep your online funds safe.

We hope the security tips discussed in this guide will help you protect your digital wallet and enjoy the convenience it offers.

WF Team
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