The COVID-19 situation has resulted in a gradual drop in cash transactions, which has been attributed to the possibility of the infection spreading via currency notes. According to KPMG research, India’s digital payment industry will expand at a CAGR of 12.7% while the mobile wallet industry will grow at a CAGR of 52.2 % by volume between 2019-23.
The digital payment ecosystem has faced a number of issues as a result of a fast increase in users and a shift in their demographics. In order to achieve the aim of a cashless economy, it is vital to recognize that the sudden drive to “go digital” may put the current security and fraud control mechanisms to the test. The threat of cybercrime is a major concern for those involved in the electronic payment system. Since data breaches and other security issues are possible with digital payments, customers need to take additional care to stay safe.
But before we talk about safety, let’s first understand how important digital payments are;
- Buyers may pay using digital payments by transferring funds straight from their bank accounts.
- Every transaction is tracked and maintained in a digital record, so there is no worry about losing cash or receiving counterfeit money.
11 most trusted safety precautions to take
India is in the midst of an exciting period of digitalization. Special attention is being paid to the digital transaction industry, which is gaining popularity and expanding at an exponential pace. An ACI Worldwide and Global Data analysis published recently said that India will maintain its top position in the digital payments market until the year 2022. According to the research, approximately 71.7% of the total payments volume in India will be made digitally by 2025.
In addition to credit cards and mobile wallets, digital payment options are becoming more popular among customers in a pandemic. While digital payments are convenient, they also pose the danger of data breaches and other security breaches, so customers must take additional measures to protect themselves.
In order to guarantee that all of your online transactions are safe and secure, here are some tips:
- Be careful when you link your bank accounts
When using connected credit card accounts, consumers are normally protected against fraud liability. However, linked checking account users are not necessarily protected in the same manner. If you’re utilizing a service that requires you to connect a checking account, you may reduce the amount of your primary account to prevent any losses. Just move money to and from the central account to consolidate them.
- When possible, use biometric authentication
Make sure that a safe method of authentication is chosen. If the authentication mechanism relies only on convenience, then it’s probably handy for criminals as well (e.g., not requiring a pin for credit card transactions). Consider using biometric authentication wherever feasible; this kind of verification makes it more difficult for fraudsters to misuse stolen credit cards or mobile devices.
- Enable two-factor authentication
It is important for customers to use SMS two-factor authentication to protect themselves against account takeovers that might result in payment fraud. One-time password codes are sent to the user through SMS, even if their original password has been hacked or stolen. This means that only the user can access a digital payment app or site. This safeguard prevents illegal access to accounts.
- Check your financial statements on a regular basis
A lot of people don’t bother checking their statements, which is the most basic kind of digital payment protection. Any discrepancies will be obvious if you perform this exercise on a regular basis. Charges that you do not recognize should be questioned and/or disputed promptly. Basic practices are important, yet not doing them might lead to a lack of value in additional practices.
- Check the identity of the person receiving your money
With digital payments, a simple but important operational security measure that everyone should use is to make sure that the people who get paid can be trusted. Many digital payment methods lack the usual checks and balances. You risk losing your money if you send it to the incorrect person or place. To prevent this from happening to you, ask the receiver to submit a payment request to you.
- Use a single payment method for all of your online purchases
The easiest way to keep track of your transactions is to maintain a record of them. Simply use one credit card or payment method for all of your internet purchases, and never use it for anything else. Verify that the card you are using has fraud protection, and then cross-reference your account statements with the online purchases you have made. Then you will have no trouble seeing any discrepancies.
- Check QR codes for errors
Even if you are scanning a QR code on a piece of paper in a public area, be sure it hasn’t been replaced with a hostile code. Using a fraudulent QR code, hackers may steal your banking or financial account information by replacing a valid payment QR code (at a store, ATM, parking meter, etc.).
- Ensure that your vendor is PCI DSS-compliant
Check to see whether your supplier complies with the PCI DSS; the greater the certification, the better. It’s critical that the vendor you choose keeps up with the latest developments in cybersecurity, obtains and maintains the necessary certifications year after year. For customers, the most important thing is to verify that their provider is implementing adequate security steps before making a transaction with them.
- Don’t use the same password for several accounts
There are a lot of new security breaches, and stolen credentials may be found on the black market. If a thief gets their hands on stolen data, they may be able to access any other accounts that use the same login and password. Use one of the free tools available to verify your credentials against a database of recently leaked data and stop using the same passwords over and over again.
- Provide as little information about yourself as possible
Don’t provide any personal information other than what is necessary. Don’t be surprised if you are asked for information that’s intrusive and unneeded. Banks and other financial organizations usually cover the financial risk, but it is up to the person to secure their own identity.
- Use only applications that you are confident in
As digital payments grow more commonplace, it is critical to utilize applications that are trustworthy. Consider setting transaction alerts as well as security features as an additional option. To take things one step further, I would turn on alerts for any cards that are linked to the app so that you can cross-reference transactions. In certain cases, people choose convenience over security, and as a result, they wind up paying a high price for their decision.
Some additional security measures that you should be aware of while using digital payment systems include;
- Keep track of your debit/credit card or bank account transactions by signing up for transaction alerts.
- Antivirus and anti-malware software should be updated often to ensure that the most recent security fixes are available.
- Maintain the sanctity of your password. Passwords should be changed on a regular basis, and they should be strong and unique across all of your accounts.
- For mobile banking and digital payments, avoid using public Wi-Fi.
- Payment providers shouldn’t share any sensitive information like your digital wallet PIN, credit card or debit card CVV number, or mobile money PIN over the phone.
- Don’t keep credit card information on your computer. Many of us store the information to prevent having to re-enter the same information in the future. However, the best course of action is to remove any traces of your credit card information from the internet.
- SSL encryption is a good sign. When making digital payments, always utilize applications that you know and trust. It is not safe to send credit card information on a website that lacks HTTPS. Cash-on-delivery is a good choice if you are not sure.
- Use a private window while making purchases on the internet. Because cookies and login information cannot be saved, it’s a secure environment for online banking.
The takeaway
It is critical to process safe online transactions and payments in order to prevent fraudulent purchases and information breaches. Fraud, in particular, has the potential to cost you a lot of money in chargeback costs. Furthermore, data breaches might result in a complete public relations catastrophe, resulting in client mistrust.
There’s no reason why you shouldn’t be selling your products in a safe manner, especially with the abundance of vendors providing cutting-edge security capabilities in today’s processing scene. It all boils down to picking the most appropriate processor.
Also Read: Why It’s Still Not Late To Invest In Cryptocurrency?