Now, with the increase in internet usage, whether on a computer or mobile, digital payments have also developed. People now prefer not to pay with cash, and this is evident from the fact that online payments have increased ninefold in the last five years.
However, it is a fact that there is a lot of fraud going on. There are also data protection, security concerns, infrastructure requirements and a lack of awareness about the risks associated with the digital system.
Consumers have become vulnerable to newer and more sophisticated scams.
In 2017-18, the RBI recorded over 2,000 online frauds in banks, amounting to over $100 million.
As a result, banks launched informational campaigns, repeatedly asking consumers to avoid sharing sensitive information with third parties.
However, the consumers themselves can also take certain measures to mitigate the risks.
It is important for users to be constantly updated to understand the digital payment system and be aware of the latest upgrades in technology and software.
It is also important to take the necessary protective measures regarding passwords, which means they must be complex (at least 10-12 characters, a mix of uppercase and lowercase letters, numbers and special characters), be reviewed at regular intervals, and use unique passwords for financial applications.
Consumers should seek out and install only legitimate or verified apps from app stores on mobile devices and purchase authorized software to avoid apps that may be vulnerable to threats.
Using unsecured or public Wi-Fi networks is another thing that makes users vulnerable to potential security threats, such as malware, information leakage, and data theft.
Individuals should avoid conducting digital transactions using open or unknown network connections, as their device and data can be exposed to phishing attacks .
Finally, consumers should be careful about linking social media profiles with digital payment applications and avoid sharing personal and sensitive data via social networking platforms, electronic messages, chats or calls.
