Personal Finance

How safe is your favourite e-wallet? Here are some tips to secure your digital wallet

Updated : November 29, 2019 06:35 AM IST

RBI made it mandatory for all transaction SMSes that users receive from these platforms to have a contact number or email ID.

It also asked the Prepaid Payment Instrument (PPI) issuers to set up 24x7 customer care helplines to report fraud or any loss or theft.

With the inception of demonetisation in the country, there was an upsurge in the adoption of mobile wallets. After 86 percent of cash went out of circulation, the digital modes of payment made their successful passage into the lives of the buyers and the sellers.

The lucrative offers such as the cashback and the discounts catered by these e-wallets gain control over the minds of the cost-conscious customers. With the maximization of the online transactions, the fraudsters also became operative.

In January 2019, the Reserve Bank of India (RBI) has issued a set of protocols limiting consumers' liability in case of unauthorised transactions that have taken place from their mobile wallets. RBI made it mandatory for all transaction SMSes that users receive from these platforms to have a contact number or email ID which when required can be used to report unauthorised transactions immediately.

It also asked the Prepaid Payment Instrument (PPI) issuers to set up 24x7 customer care helplines to report fraud or any loss or theft, to ensure that customers are assisted and given a full refund if a case of fraud occurred due to the negligence or deficiency on the part of the wallet provider.

RBI mandated that if such cases are reported within three days, the entire amount be refunded. If the fraud is reported within four to seven days, the transaction value or Rs 10,000, whichever is lower, be refunded. If the fraud is reported after seven days, the refund will be as per the RBI-approved policy of the e-wallet company

Mukesh Choudhary, founder and chief executive officer of Cyberops Infosec, cybercrime consultant and information security professional quoted to CNBC TV-18, “No matter what the situation is, do not disclose the card credentials like the PIN, CVV or OTP to anyone. He also said that people using these e-wallets should become more aware and be mindful. One must use a single card for online transactions and keep a minimum balance in that card because if in case any fraud takes place then you don't lose a lot of money.”

Talking to CNBC TV-18 Prashant Mali, a famous international cybersecurity and cyber law expert lawyer said people should abstain from replying to the pre-approved links. These are called the ‘Phishing attacks’ which are used to steal users' login details and personal data, making e-wallet accounts prone to fraud.

Later he added one must create a Unique Password for Digital Wallet which is hard to guess as this may prevent the risk of unauthorised access. NFC (Near Field Communication) payments are becoming increasingly mainstream and this is like an open invitation to the fraudsters. People using these NFC cards must keep their cards in the metal wallet.

How safe is your favourite e-wallet? Here are some tips to secure your digital wallet

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