Tips on Protecting your digital wallet from cyber threats

1. Use strong, unique passwords

The first line of defence for your digital wallet is a strong, unique password. Avoid common words or easily guessable sequences. Instead, opt for a mix of letters, numbers, and special characters. Imagine your password is like the key to your house. If it's something simple, like "123456", it's like leaving your front door unlocked. If you use a complex password, such as "dH@ka!zd%cp1L", it's like having a high-security lock on your door. Just as you wouldn't use the same key for your house, car, and office, don't reuse passwords across different sites or accounts.

2. Enable two-factor authentication (2fa)

Think of 2FA as a double-check system. Suppose you're entering a secured facility. First, you swipe your access card (something you have), then enter a PIN (something you know). If someone steals your card, they can't get in without the PIN. That's how 2FA protects your digital wallet: even if someone gets your password, they can't access your account without access to your second factor, like a code sent to your phone.

3. Keep your software and device updated

Imagine driving a car that hasn't been serviced in years. Just as a car needs regular maintenance to run smoothly and avoid breakdowns, your software needs updates to fix security holes and keep cyber threats at bay. Delaying updates leaves you exposed to attackers exploiting known weaknesses.

4. Beware of phishing attempts

Imagine getting a letter that looks like it's from your bank, asking you to provide your account details to "verify your identity." You'd be suspicious, right? That's phishing, but it happens via email or messages. Always double-check the source before giving out personal information. If in doubt, contact the company directly through official channels.

5. Use a secure internet connection

Avoid accessing your digital wallet over public Wi-Fi networks. Using public Wi-Fi to access your digital wallet is like discussing your bank account details in a crowded place; someone could be listening. If you must use public Wi-Fi, employ a Virtual Private Network (VPN) to encrypt your internet connection and protect your data from prying eyes. A VPN is like having a private, soundproof room in that crowded place where you can speak freely without being overheard.

6. Safeguard your sensitive information 

Treat your personal and card details like your toothbrush: don't share them with anyone and keep them out of places they don't belong, just like you wouldn't share or store your toothbrush in someone else's place.

7. Regularly Monitor Your Accounts

Regularly checking your digital wallet is like occasionally checking your house to make sure all doors are locked, and windows are closed. It helps you catch any unauthorised access early so you can act quickly to secure your assets.

8. Educate yourself

Staying informed about cyber threats is like learning first aid. The more you know, the better prepared you are to prevent accidents or respond effectively when they occur.

9. Backup your wallet

Backing up your wallet's recovery information is like keeping a spare set of house keys. If you lose your keys (or, in this case, access to your wallet), you have a backup to regain access without hassle.

10. Be cautious with smart contracts

Engaging with smart contracts without understanding them is like signing a contract without reading it. Ensure you're fully aware of what you're agreeing to to avoid unintended consequences.

11. Utilise a hardware wallet for significant amounts

Think of a hardware wallet as a safe deposit box for your digital wallet. Just as you'd keep valuable jewellery or documents in a bank's safe deposit box, you store your digital assets in a hardware wallet to protect them from online thieves. These physical devices store your private keys offline, making them immune to online hacking attempts. 

12. Download apps from reliable source

Download apps as you would select a flight: only through trusted airlines like the App Store or Google Play, ensuring a secure and reliable journey through the digital skies.

Cyber threats are evolving rapidly, making it crucial for individuals to safeguard their digital assets with vigilance and informed strategies. Thinking of digital wallet security in these everyday terms makes it easier to understand and implement the necessary precautions to protect your digital assets.

B M Zahid ul Haque is an Experienced CISO and Cyber Digital Transformation Strategist. The author can be reached at [email protected].