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.

Malware/rootkits installation

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.

Cyber-attacks have become sophisticated and are now capable of causing long-term effects on organizations. Thus, businesses need to prepare comprehensive cybersecurity policies. The first step to drafting a cybersecurity policy is to be aware of the threats.

Here are the types of cyber-attacks that an organization is most likely to face:

• Brute Force Attack: Under this type of attack, the attackers adopt a trial and error approach to guess the password to a system or user account. They try every possible combination of passwords or passphrases until the account is unlocked. Brute force attacks are expedited by using software or tools that can push many possible passwords in a short time. Some of the tools used by cybercriminals include Aircrack-ng, Crack, Hashcat, Hydra, etc.
  Safety Tips:
• Use complex passwords and change them regularly
• Set a limit on number of login attempts
• Enable captchas
• Employ multi-factor authentication
• Credential Stuffing: Credential stuffing cyber-attack is based on the assumption that users tend to keep the same password across multiple accounts. Attackers use a database of compromised credentials (password breach database available on the dark web containing stolen credentials from data breaches) to gain unauthorized access to an account. The attackers use bots for automating and scaling up the attack. The hacked accounts can be used for financial theft, fraudulent transactions, misuse of stored data, etc.

Safety Tips:

• Employ multi-step login process throughout the organization
• Blacklist suspicious IP addresses
• Use techniques such as device fingerprinting
• Phishing & Spear Phishing: Phishing is one of the most common cyber-attack types. Attackers frame an email that looks legitimate with a seemingly trusted source to trick targets into providing personal details. The emails generally include matters that would require a user to act in a hurry; for example, the email may mention that the user needs to verify his details within a few minutes to avoid being charged a penalty or account suspension by his financial institution. The attackers use technical knowledge in conjunction with social engineering to design a successful phishing attack. Spear phishing is a more targeted attack where the attackers research the target to prepare a more personalized message or email.

Safety Tips:

• Be wary of emails from unknown sources
• Before clicking on a link, hover over it to see the destination
• Pay close attention to email headers
• Malware Attacks: Malware is a broad term representing attacks where malicious software is downloaded on the target device to steal, encrypt, or delete sensitive data for business or financial benefits. Majorly known forms of malware include adware, bots, ransomware, and Trojans.

Safety Tips:

• Use a dedicated tool for adware removal
• Install firewall and keep the system up-to-date
• Perform frequent backup
• Avoid downloads from unknown sources

Centex Technologies is committed to helping clients understand cyber-attacks and formulate an effective strategy to stay protected. For more information, call Centex Technologies at (972) 375 - 9654.

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