Criminal networks are continuing to use elaborate ways to exploit individuals and businesses and one of those methods is digital wallet abuse.
This is on the rise, with over 2.5 million cases of remote purchase fraud reported in 2024. Given how concerning the rise in cases is, it is important that you can spot the signs of digital wallet abuse and quickly implement protection measures.
How do criminal networks exploit digital wallets?
The criminal networks committing digital wallet abuse will look to steal credit card details with the cardholder’s knowledge and add them to digital payment apps such as Google Pay and Apple Pay.
Once they have collected the details they need, the criminals can avoid the standards banking checks and begin to withdraw cash and use the card to complete purchases.
Many banks and apps ask for a One-Time Passcode (OTP) and this is where the criminals aim to exploit the verification process with the primary aim to obtain the OTP and manipulate individuals to share this with them.
There are several methods they will look to use to try and get this. They will usually use avenues such as phishing, social media content, social engineering and malicious online adverts.
If they do manage to obtain the OTP, they illicitly unlock the funds and information they have been attempting to access.
How can you protect your digital wallet and information?
An easy method to reduce the risk of digital wallet abuse and protect your details is to avoid receiving OTPs via SMS.
Criminals will use methods such as social engineering and SIM swapping to access the information they need, but if you take away the option of receiving OPTs via SMS, it makes it much more difficult for criminals.
Banks are seeing the impact of removing SMS OTPs, with very few cases of digital wallet abuse being reported, which is why you should consider changing how you receive OTPs in the future.
In addition to this, education is another valuable method to reduce the risks of digital wallet abuse. The more you know about it, the better decisions you can make and the more information you can relay to other people.
Other ways you can reduce the risk are to educate yourself and your clients on exactly what digital wallet abuse is.
