Digital wallets are virtual wallets that store financial information and identification documents and allow users to conduct online/offline transactions. Depending on the type of digital wallet, it may contain debit, credit, prepaid, and loyalty card data, as well as personal information like a driver's license, health card, and other identification documents. Cyber criminals can make efforts to get access to this information for monetary benefits. In order to stay protected, it is important to have in-depth knowledge of the prevailing security risks.
Following is a list of some of the well-known security risks associated with digital wallets:
Attempting to tamper with the application connected to the digital wallet
Backdoor in a mobile payment app allows an attacker to steal login credentials and transfer them to a server controlled by the attacker. This may allow attackers to use information in digital wallet for fraudulent activities.
Exploiting the vulnerabilities of the application connected to the digital wallet
Unauthorized access to mobile payment capability might arise as a result of an attack on mobile payment APIs used for in-app purchases. This may allow attackers to carry out fraudulent transactions.
Theft of bank and credit card accounts linked to the mobile payment app can also lead to fraud. A fraudster might potentially take advantage of flaws in the registration process to add a new mobile device to the user profile and use it to make fraudulent transactions.
Rootkit is a serious threat vector that may be used to directly monitor and hijack/alter API requests as they are marshaled to and from the API endpoint connected to the digital wallet. Attackers may manipulate variables in transit, such as payment amounts.
Permissions for gaining access to the device operating system
With the approval of the user, an OS may grant access to particular resources. Even if a program isn't malicious, having certain permissions might allow it to access sensitive information which can be utilized by another app to get unauthorised access to information stored in the digital wallet installed on the device.
Verifying identities of users
On a stolen device, if a hacker is able to circumvent biometric authentication, user’s complete financial/ payment information would be compromised and payments can be made. In some cases, users may authorize payments by just inputting the lock screen pattern on a mobile phone. Because this information can be easily accessed by eavesdropping, it might encourage opportunistic attackers to hijack a device and make payments on the victim’s behalf.
Payments that are illegitimate
If the card issuer’s terms and conditions are not followed, the issuer may refuse to take culpability for fraud.
Payment transaction accountability
To make a payment, the providers demand fingerprint authentication. There have been instances where fingerprint authentication has been bypassed or compromised on mobile devices. Also, when several users have access to the device, accountability is compromised and it might be difficult to identify the individual who made the payment.
Stolen equipment has a larger attack surface
If a device connected to a digital wallet is stolen, criminals may be able to acquire access to payment cards.
Phishing and social engineering assaults
As digital wallets become more widely adopted, attackers may be enticed to launch attacks imitating genuine applications to seek credit card details. They may also resort to phishing and social engineering in an attempt to persuade users to provide the information required to carry an attack.
Centex Technologies provides advanced cybersecurity solutions to businesses. For more information, contact Centex Technologies at Killeen (254) 213 - 4740, Dallas (972) 375 - 9654, Atlanta (404) 994 - 5074, and Austin (512) 956 – 5454.