Are Electronic Wallets Reliable?
For many years now, people have been using electronic or digital wallets. In Europe, it has become a common practice, and in the USA, the habit of paying with an electronic wallet has grown exponentially due to the COVID-19 pandemic. Indeed, the pandemic has turned the whole world towards electronic shopping and payments.
What is an Electronic Wallet?
There are several types of these wallets. It can be an account in a payment service or a digital copy of your bank cards on a smartphone.
Wallet in a Smartphone
To buy something in a store, simply bring your phone close to the terminal, and the money will be debited. No need to take out a wallet, pull out a card, and physically apply it to the terminal. Payment is fast, contactless, and convenient. Besides convenience, this type of electronic wallet provides some security - you don't have to carry cash, and if your smartphone is stolen or lost, access to the wallet won't disappear; you can easily enter it from another device. To make a purchase, you need to go through authentication - enter a PIN code or confirm the transaction with biometric data. This reduces the risk of unauthorized purchases. Nowadays, you can use banking apps for payment, which have a significantly higher level of protection.
Account in a Payment Service
This is a tool for online payments, most often without a card. You can deposit money into such wallets directly or connect a bank card to them. All further money operations happen virtually. At any time, you can transfer the money to a bank card or withdraw cash at special points. Such wallets include Qiwi, PayPal, WebMoney, and others. Using such wallets is convenient, but on the other hand, they provide a significant loophole for hackers who can steal your financial data. The gray area also plays into their hands, as electronic wallets, unlike bank accounts, are less traceable. It's easy to track the path of money from one bank account to another, but if you add a couple of anonymous wallets to their route, it becomes much harder or even impossible to find the money later. Therefore, the reliability of your electronic wallet directly depends on how you use and protect it.
How to Enhance Security
- Phone Lock
Set up more complex authentication to access your smartphone. Just a password is not enough; set up Face ID and Touch ID, use Google Authenticator or any other programs compatible with your device. Then a fraudster won't be able to access your phone and electronic wallet.
- Account Monitoring
Be attentive to the movement of money in your accounts, wallets, and cards. Sometimes fraudsters don't try to withdraw everything you have but gradually withdraw small amounts to avoid attracting attention.
- VPN
Thanks to comprehensive encryption, you don't have to worry that someone will be able to track your online purchases or intercept personal data during a transaction. Electronic wallets are mostly safe but not completely invulnerable, and it is important to remember this. Download Shiva VPN and don't worry about the safety of your data.
