While most of the large corporations were not affected by demonetization, their CIOs emphasize on security for digital payment platforms. Amit Kapil, Gruop CIO, Caparo talks to Dataquest and shares his thoughts on digital payment platforms and the need for security in them.
Demonetization changed the entire mobile wallet industry. And, suddenly there was a huge demand and acceptance of mobile wallets as everyone was looking for solutions that could help them transact in the paucity of physical currency. Demonetization did also affect businesses and large corporations in one way or the other, though many of them did face least challenges. In its quest to know from CIOs as to how this move impacted their business and lives, Dataquest spoke to Amit Kapil, Group CIO, Caparo.
While everyone was groping for ways to continue business and scrambling for ways that could help them buy and sell without the cash, most of the big organizations did face least of the problems. Caparo has been one such company which was not affected by demonetization. When asked whether or not Caparo embraced any of the mobile wallet solutions during this phase, Kapil said, “No, we didn’t deploy mobile wallets for our organization as our line of business is not the kind where we have drastic need to deploy this solution.”
The risks of using mobile wallets
But it does not mean that the company did not face any challenges. Caparo did have its share of challenges due to demonetization. Although these challenges are not directly associated, Kapil outlines and tells about the practical challenges and risks associated with mobile wallets. Here are the common challenges related to mobile wallets (as Kapil sees):
- By interception of traffic between over the air transmission (OTA) phone and point of sale (POS), hacker can hack identity or information
- User can download malicious software on mobile which can lead to leakage of data
- Configuration and setup complexity when user changes his/her phone
- Non availability of digital rights management (DRM) on mobile devices can lead to the risk of theft of content and digital piracy
- Weakness of GSM encryption can lead to theft of service or content or loss of revenue or illegal transfer of funds
Secure payment platform
Kapil further tells how his organization and team will resort to a mobile-based payment solution if the need arises in the future. His utmost priority while selecting a mobile wallet solution would be security. “We are open to adopt mobile wallet technology if the business need arises but with ZERO compromise on security. Absence of appropriate security can lead organizations to financial losses,” added Kapil.
Amit Kapil’s top tips to safely use mobile wallets
In today’s world traditional wallets are changing to digital or e-wallets. These wallets are installed as an app on your phone and you can add money to the wallets from your credit card or debit card. Now, if you are not careful, hackers can steal money from your wallets, so be careful of these e-pickpocketers.
- Hello, I am from bank
Cyber thieves may call you on phone claiming to be from your bank. They will have some authentic information about you. They will trick you into giving your account details. NEVER SHARE ACCOUNT DETAILS OVER PHONE. If you do, they can wipe off your money remotely.
- Click, I am from bank
Your bank will NEVER email you to ask for your bank details. NEVER click on any link and share your account details. Always enter the URL of your bank manually and login directly. Not via click on any links
- Know The ATM
If possible, use your ATM card on an ATM at a secure, well-lit location, one which has a security guard available. Use only a single ATM for cash withdrawal; if you use your card at any ATM which is available, there are high chances that card details are stolen by cyber criminals. Use ATM in your office complex/society.
- Hide it
Always hide the ATM/credit card machine keypad while entering the PIN. There may be cameras recording your ATM PIN, which can later be used by cyber thieves.
- Watch it
Never let your ATM/credit card leave your sight. In restaurants and other places, ask the vendor to bring machine in front of you and enter the PIN yourself. NEVER handover the PIN to vendor, irrespective of reason they give.
- Strong password
Ensure to have strong password for your phone/tablet/PC, where you use Digital wallets. Don’t keep easy to guess passwords like 1234 or simple unlock patterns. Don’t share your password with anyone
- Trusted App store
Install digital wallet app from trusted source; avoid installing all junk apps along with apps that have your money. It is never a good idea to keep trash and money at same place.
- Free Wi-Fi, Nah….
Never use free Wi-Fi to conduct any financial transaction. Hackers can easily capture information travelling over free WiFi networks. Turn off WiFi on your phone when not in use.
- Logout from wallet
You may logout from your digital wallet when not using it, even if you lose your phone, hackers will still not be able to use wallet as they won’t have login details.
- Contact number
Keep digital wallet merchant contact number handy, just in case you need to report theft or unauthorized transaction. Notify them immediately to contain the damage.