e-Wallets or Digital Wallets are fast becoming the go-to method for conducting financial transactions. They’re fast, convenient and most importantly – secure.
Or are they? Like most digital assets, e-Wallets are vulnerable to cybercrime, so when all of your finances are stored in the one place, how confident can you be that your assets are protected? In this blog we’ll delve into the world of digital finances and look at what you can do to protect your business and customers from e-Wallet fraud.
What is an e-Wallet?
Whilst the birth of digital payments can be traced back to the late nineties, e-Wallets have been rising in popularity for the last decade. In short, an e-Wallet is a convenient way of digitally collating funds, passwords, loyalty cards and allows the bearer to make financial transactions and track payment histories online.
We live in an age of instant gratification and this software-based system allows consumers to purchase products and services and conduct their financial admin at the push of a button. Because it’s so enticing and convenient, consumers are likely to set it up without researching the risks – which means it’s often up to the organisations they’re interacting with to protect them against fraud.
So what can you do to protect both your business and your customers from this?
#1: Be on the lookout for suspicious behaviour
Consumers may not always notice when their e-Wallets have been compromised but there are some unusual patterns that you can look out for. One of the clearest red-flags for any type of financial fraud is a high value first time purchase. Secondly, if multiple orders are being sent to the same address, but were each purchased using a different payment method – this may be a sign of fraudulent activity.
#2: Secure the payment pages of your website
Not all URLs are created equal. URLs with http or https at the beginning are clearly similar, except for that very significant ‘s’ – the ‘s’ stands for secure. Essentially this encrypts the data being sent to and from this page so cyber criminals can’t read it. To ensure the encryption of your customer’s information, ensure that all login and payment pages are https rather than http.
#3: Separate the technology used for your company’s financial activities
By having dedicated technology that you use for your company’s financials, you reduce the risk of cyber criminals finding a way in. This is especially the case if you keep it on a separate network to the rest of your company.
#4: Employ smart decisioning software to seek out fraudulent activity
With the help of decisioning software you are far more likely to pin-point fraudulent transactions early. The software works by evaluating and authorising a transaction based on a set of pre-populated rules.
It’s important to use a reputable company for this as an inaccurate system will likely approve fraudulent transactions and decline genuine ones. In this case, not only are you not solving the problem, but you’re also damaging your reputation.
#5: Partner with a reputable digital protection company
Digital accounting is on the rise and with more and more consumers choosing to use e-Wallets to house their finances, the more likely they are to fall victim to cybercrime. Help fight against this type of fraud and protect your business and your customers by partnering with a reputable digital protection company.
At FraudWatch, our analysts are working hard 24x7x365 to ensure the protection of our clients and their customers against digital threats. We use innovative proprietary technology to protect against phishing and malware attacks, brand abuse, fraudulent financial activity and much more. Team up with us today so we can do the heavy lifting when it comes to digital protection so you can focus on your business.