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Online Payment Security: Essential Tips for Safety

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Online payments have entirely changed the way Indians have banked and the perceptions around it. Almost all banks now offer most of their services online, thereby, eliminating the need to visit their branch offices for any needs. Online payments have a wide gamut of usage as we will find out. As most of the transactions take online, they only add to the convenience of customers. However, at the same time, it does raise the important question of online payment security. Are all the payments that you make online secure and how can you as a consumer take precautions to steer as far away from online fraudulent activities as possible? A basic answer will be to ensure you have cyber insurance for your safety. Let us read more about this.

Understanding online payments

Online payments or digital payments are all financial transactions that take place electronically via the Internet without the usage of physical money. You can make online payments using a laptop, smartphone, tablet, computer, or even a credit card, or debit card. Online payments provide extreme convenience for consumers as well as businesses, as they can complete transactions without having to worry about carrying notes.

Compared to the traditional mode of payments, online payments are easier, efficient, and in most cases more affordable as well. Here are three prominent reasons for shifting to online payments, if you haven’t already.

1. Fast

Online payments ensure that transactions are quick and happen usually within a few minutes. This allows for a much better experience for customers as well as businesses. You can easily transfer money to other individuals without ever having to stand in bank queues.

2. Easy tracking

Online payments are easy to track, account and budget for. You will receive a transaction ID for all the transactions, making it easy to track any payment mismatch or hassle.

3. Secure

Online payments use a lot of measures such as encryption, SSL, tokenisations, etc. to make the transactions secure. Thus, lowering any apprehensions that one might have.

Online payment security

Since a lot of transactions take place online, it is only prudent to think about the security of these transactions. This is where online payment security comes to the forefront. Online payment security refers to the series of measures that individuals as well as businesses can take to secure online payments. As the transactions are online, there are chances of payment fraud, loss of personal data, and unauthorised access to financial data.

To avoid any such occurrences, online payment security becomes even more essential. Here are some of the best practices to ensure robust online payment security.

1. 2FA

2FA or two-factor authentication, also known as two-step verification is one of the more fundamental ways of securing online payments. In simple terms, this method requires the user to authenticate themselves using two different methods, before they can access a website. For example, if you want to transfer funds to an individual, you will first need to log in to your bank account using your credentials. Later, you will also need to enter a one-time password to complete the transaction, which can either be sent via sms or email.

2. Card tokenisation

Card tokenisation is a process in which the 16-digit card number is replaced by a token. This token or digital identifier is then used for further transactions. This eliminates the process of storing card details and thus, reduces the possibility of data breaches of card details.

3. 3D secure

3D Secure is an online payment security tool used primarily in e-commerce websites. The method is used to verify the identity of a customer. The additional authentication helps with user validation, after which a transaction can be completed. It reduces the risk of unauthorised usage of cards.

4. Encryption

Encryption is one of the most robust ways of transferring data, where the payment-related information is encrypted and only the person with the encryption key can read the data. Two of the most common encryption mechanisms include SSL (Secure Sockets Layer) and TLS (Transport Layer Security). The absence of TLS would mean that anyone can read the data being sent online if they can intercept it. An easy way of finding out a website is secure is by looking at the URL. It is recommended that you only use websites with https:// protocol for enhanced online payment security.

5. Updated systems

One of the easier ways to keep your online payment secured is by updating your operating system. Keeping your operating system updated will ensure that it has all the necessary security patches and reduces the chances of introducing vulnerabilities. It would prevent a lot of potential attacks proactively.

Maintaining cyber hygiene

Consumers who use online payments can also inculcate several best practices to ensure cyber hygiene and lower the risk of any cyber-attacks or financial fraud.

1. It is highly advisable to avoid using public computers for online transactions or unsecured public wi-fi as well. These are easy target areas for cybercriminals.

2. Most financial apps offer two factor authentication, including the biometrics of your smartphone such as fingerprint or facial recognition. Ensure to enable these additional authentications.

3. Make sure that you use strong passwords for your banking and online accounts. And regulate them on a timely basis. It is also advisable to use different passwords for different accounts. A single password at all places might be easier to remember, leaving you vulnerable to any breaches.

4. Never share your PIN or password to online accounts with any individual.

5. Avoid clicking on embedded links either on social media or in your emails that might look similar to your bank or any other financial institution.

6. You can set limits on transactions for online transactions, limiting the damage if there is any sort of breach.

Apart from the above, you can also opt for a cyber insurance policy. A cyber insurance policy gives you protection against the following.

1. Unauthorised financial transactions or theft of funds from your accounts.

2. Financial losses incurred while shopping online.

3. Financial losses for online sellers are incurred due to fraudulent activities carried out by buyers.

4. Legal expenses related to a data breach or privacy breach.

5. Financial losses due to cyber extortion.

6. Social media liability and network security liability.

7. Costs associated with recovering data lost due to malware attacks.

By paying a small premium for cyber insurance, you can secure most of your online activities from harm’s way.

Conclusion

Online payment security is crucial considering the number of transactions that we carry out online these days. Above are some effective ways to enhance online payment security and protect yourself from financial fraud of any sort. You can add another layer of protection by opting for a cyber insurance policy. The plan will safeguard you against most perils of online activities and even aid you financially.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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