Are E-Wallets Safe? How to Secure Digital Payments For Your Own Sake

E-wallets are one of the most popular alternative payment methods around, but are they safe to use?E-wallet safe

Without a doubt, yes — e-wallets are perfectly safe to use.

Most, if not all, feature advanced encryption, making them extremely difficult to hack. In fact, there is a higher risk of your phone getting stolen instead of hacked.

And for added security, most e-wallets require a pin code/password or biometric authentication to perform a transaction to prevent any unauthorized transfers.

Also, keep in mind that e-wallets are closely monitored by the authorities to ensure safe and secure operations. For example, Malaysia’s Bank Negara has provided a strict set of regulations that providers must adhere to, including adequate security and internal controls to protect users.

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Potential Security Issues

Although e-wallets are 100% safe to use, this doesn’t mean that you should take security for granted. Scammers and cybercriminals are getting more sophisticated and can still compromise your mobile device.

So, let’s take a look at several potential security issues, such as:

  • Theft: Someone can steal your phone number to create an e-wallet account

  • Brute force hacking: Taking over your e-wallet account by cracking your password

  • Malicious software: Installing APK files infected with malware on your phone to intercept and steal your OTP

  • Scams: Use Whatsapp and SMSs to send out phishing messages. They may also attempt to utilize social engineering techniques to trick unsuspecting users.

Staying Safe With Digital Payments

Fortunately, keeping your e-wallet transactions secure is quite simple. Our team of cybersecurity experts has put together a number of foolproof tips to help you stay protected.

Let’s start with a simple one:

1. Never Use Free Wi-FiXanPay Blog - Free Wifi

Hackers and other cybercriminals love to use free Wi-Fi for one simple reason: it lures in plenty of unsuspecting victims.

As data passed over these networks is often unsecured and unencrypted, it becomes effortless for a hacker to perform a man-in-the-middle (MITM) attack. A hacker can easily access highly-sensitive information such as passwords and financial data when that happens.

For example, using your e-wallet to pay for a transaction while connected to free Wi-Fi means that a hacker can easily intercept any information passed between you and the merchant. Your login details and PIN can be logged and used to steal funds from your e-wallet.

So, as a rule of thumb, avoid free Wi-Fi at all times, even when you’re not performing any financial transactions or accessing sensitive data. Thus, reducing the likelihood of you falling victim to a man-in-the-middle attack.

2. Download Security AppsXanPay Blog - Download Security Apps

Another way to keep your funds safe when using an e-wallet is by downloading a security app from a reputable developer onto your phone. Some examples in no particular order include:

These apps safeguard your privacy and prevent hackers from stealing any sensitive data you may have.

And if your phone gets lost or stolen, most security apps allow you to remotely wipe everything on the device, thus protecting you from identity theft and cyberattacks. Removing all data from your phone also ensures that the thief cannot use your e-wallet or attempt to access any of your financial data.

3. Only Top Up When NecessaryXanPay Blog - Top Up when necessary

An easy way to minimize your risk exposure is to keep a minimum balance in your e-wallet and only reload when needed. Hence if your phone gets lost or hacked, the perpetrators cannot use your e-wallet.

And because e-wallets have no minimum balance requirements, you won’t have to worry about limiting your liquidity at any time.

4. Secure Your Device With a Passkey or Biometric LockXanPay Blog - Secure with passkey or biometric

If you haven’t already done so, I highly recommend that you secure your mobile device with a passkey or biometric lock. Most new generation smartphones have a biometric lock that uses thumbprints or facial recognition to unlock your device.

These security measures make it next to impossible to use a stolen phone and prevent thieves from accessing your e-wallet.

5. Consider Disabling Auto-ReloadXanPay Blog - disable auto reload

Most e-wallets have an auto-reload feature which automatically tops up your balance once it falls below a certain level. It does this by automatically debiting your pre-selected bank cards. While extremely convenient, this feature is open to abuse.

In 2022, several victims in Malaysia collectively lost nearly $5,000 when a hacker gained access to their TnG wallets. The hacker used the auto-reload function to siphon money into another account continually.

When the victims realized what was going on, it was too late. And to add insult to injury, the transfers were authorized by PIN, meaning that the transactions are valid, which means that the victims are not eligible for a refund.

How Merchants Can Protect Their Customers

Ensuring that customers have a safe payment experience should always be at the back of any merchant’s mind. Besides safeguarding their reputation, it also helps generate repeat business by building confidence in customers.

But how can merchants go about doing so?

The answer lies in XanPay — it’s a payments platform specializing in accepting all manner of alternative payment methods (APMs), such as direct bank transfers and e-wallet payments.

Alternative payment methods are significantly safer compared to card payments. APMs do not require users to provide sensitive financial information and offer stronger encryption. Instead, customers only need to scan a QR code or provide a mobile number to process the transaction.

As e-wallets have taken off in such a big way across Asia, supporting these new payment methods will allow businesses to tap into previously inaccessible markets.

Fortunately, XanPay supports APMs in more than 10 countries across the Asia Pacific. It’s also easily integrated with plugins like WooCommerce and Opencart. So that way, your business is ready to accept payments from all over Asia with minimal setup.

Most importantly, XanPay incorporates several concrete security measures to protect you and your customers.

For example, all traffic between you and XanPay is safeguarded by SSL, making it impossible for hackers to access.

Additionally, the platform does not store any customer payment credentials, which eliminates the risk of data theft. Third-party security companies regularly perform penetration tests and security audits to ensure the integrity of XanPay’s infrastructure.

Protect Your Business and Customers Today With XanPay

E-wallets represent the future of commerce worldwide, both online and offline. However, consumer safety should always be at the forefront of any undertaking. As scammers and cybercriminals become increasingly advanced, merchants must ensure that their customers are kept safe.

And with XanPay, you have an outstanding payments platform for a business looking to keep its customers safe while breaking into new markets. For more information on our range of services, check us out here.

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