There are several steps that can be taken to avoid being the victim of cyber hacking or any other form of crime at a time when you are taking part in a cashless transaction. You can always implement an authentication component containing two factors. You can use things like one-time passwords (OTP), Secure Sockets Layers (SSLs) and 128 bit encryption as a form of security measure. You need to make sure that you withdraw your money from an ATM that comes equipped with the latest anti-skimming technology as well as round-the-clock surveillance. It is also important that your banking systems are in compliance with the latest regulations.
What can the bank do?
The bank can play a major role in safeguarding the interests of its customers by adhering to the latest standards that happen to be reputable as well. They also have to take measures that are effective in countering menace such as malware as well as distributed denial-of-service attacks (DDoS). It is also important that you never respond to SMSs and e-mails that ask for your personally identifiable information (PII). In order to make sure that hacking thieves can be kept at bay you need to monitor your bills and bank accounts on a consistent basis.
The importance of PIN
You should also refrain from sharing your personal identification number (PIN) and related details with anyone else, especially people whom you do not know. The firms that are handling the online transactions need to make sure that they are using systems that are compliant with the standard named Payment Card Industry Data Security Standard (PCI DSS) 2.0. Last, but not the least, there is also the need to educate ourselves regarding the different risks that we face when we transact online.
The importance of learning by ourselves
We need to learn what are the steps that we can take in order to lessen or completely do away with the risks that we are exposed to when we are transacting online. We need to do this so that India is able to achieve its aim of transition to a cashless economy at the earliest. There are several questions that can be asked when we speak of such a scenario. For starters, we need to judge the importance and necessity of the security measures being taken to make these cashless transactions safer than before.
How are digital transactions being affected by cyber crime?
This is also one question that needs to be asked as that will influence how we prepare ourselves for this menace even as we take our first few steps in becoming a digital economy per se. For starters, there are many benefits of digital transactions. It reduces the amount of cash that you have to carry around. However, it is also true that such form of transaction too is facing plenty of threats and a lot of them are evolving on a regular basis. Cash is normally regarded as king but the situation is quite different in a number of countries.
Where cash is trash
Totalpayments.org states that there are five countries that lead the world when it comes to cashless transactions. Sweden heads the list and as a result of cashless transactions has seen its bank robberies come down to 16 in 2011 compared to 110 in 2008. Somaliland is also one region where the electronic banking system is so much better than some of the advanced countries of the world. Kenya uses the M-Pesa system that can be used for a wide variety of activities such as receiving salaries and paying school fees and other bills. Canada and South Korea are included in the list as well.