Important Challenges of Electronic Payments Security

Electronic payments have taken money transactions to a whole new level. Nowadays, we can enjoy convenient, speedy, and easy money transfers at the touch of a button. Furthermore, the emergence of digital wallets means storing our finances more securely and risk-free. However, this technological advent is not flawless.

Using mainly electronic payments forces you to invest in additional services and equipment. For example, you will have to use an electronic storage solution. Fortunately, e-wallets are usually multi-functional, and services like Paxum make them almost free. Sadly, cybercriminals and fraudsters are on their own mission of finding breaches in their security system.

Below are the most important challenges of e-payments security this year and beyond.

  1. E-Payment Applications May Have Security Flaws

Generally, the most common risk of electronic payment solutions comes from their developers. If the team building such a service is not careful, it can easily leave a backdoor for the hackers to use later. This mistake is seldom intentional. However, it’s bound to happen with unreliable payment platforms.

Business woman holding credit card.
  1. Smartphones Pose Big Security Risks

Today, we rely on our smartphones more than on any device in the history of humankind. Our phones link us to our loved ones, jobs, and finances. We use them to communicate, orientate, and pay for stuff. However, we rarely realize that this incredible feat of convenience comes with severe risks.

Your phone is the key to all your belongings. And, it doesn’t take much for a persevering hacker to obtain it and take control of your assets. Most importantly, a cybercriminal doesn’t even have to hold physical possession of your smartphone. They can do it remotely through malicious software they plant on your phone.

  1. Losing Your Phone Could Spell Disaster

If you lose your phone somewhere, your assets are already at risk. However, the same can happen when downloading a new app or accessing a dubious link or attachments. That’s how hackers reach your phone from a distance and subsequently access your payment service to retrieve your finances and personal data.

  1. Exposing Your Use of Mobile Payments

Another challenge to electronic payment security is the way you use your phone. For example, holding it out in the open when typing your personal details may expose you to hackers. Someone can see and record this action. And, in some unreliable areas, fraudsters could obtain this precious information from security camera footage.

  1. Cloned applications

Lastly, hackers could trick you into using a cloned application on your phone instead of the payment service provider. This happens when you download such solutions from unreliable sources. Also, it could occur if you don’t use the original application.

Other times, hackers could steal your phone and surprisingly help you retrieve it. However, they used the short time they had it to install malicious software on it or the cloned version of your financial apps. When you start using it again, you insert your secret pass keys only to give them access to your e-wallet. That’s why it is always recommended to uninstall all apps and reset your phone to factory settings after getting it back.