A recent report shows that the acceptance of digital wallets as well as the growth of them in underserved communities will significantly increase the popularity of them over the next few years – leading to a predicted growth of over two thirds of the global population owning a digital wallet in four years.
With the dramatic rise of digital wallets, concern surrounding our digital security comes into question. Cyber attacks are consistently on the rise; with cybercriminals making technological advancements to catch up with digital popularity.
With more people willing to hold sensitive information in digital wallets, what will the future of our threat landscape become?
Nick France, CTO of identity management firm Sectigo, discusses the risks and concerts of digital wallets.
“It’s crucial to remember that we’re in an all-or-nothing era for digital identities. We are either in a state of complete security or a rotting foundation. Weak digital identities are the chink in the armor of digital wallets. A compromised login exposes an entire financial ecosystem – bank accounts, loyalty programmes, potentially even crypto holdings – all housed within the wallet.
Digital wallets expose a treasure trove of financial data if not secured properly. Lost phones with weak PINs, malware, social engineering scams, and even seemingly secure biometric authentication can be compromised with sophisticated spoofing techniques. To truly unlock the potential of these payment methods, a multi-pronged approach is necessary.
Finally, collaboration between financial institutions, technology providers, and regulators is essential to develop and implement robust security protocols that safeguard not just the wallets, but the digital identities that underpin them”.