November 12, 2024 | 00:00
Over the weekend, many users of a popular mobile wallet app found themselves in a state of worry as fraudulent transactions took place without their consent. Others were quick to notice the absence of the one-time PIN, which is usually sent to the registered mobile number for security reasons. This led to suspicions that the breach might be an inside job, as the perpetrators made the fraudulent transactions appear legitimate and transparent. In response, the company released a statement assuring users that it was doing its best to recover the stolen funds. However, for many, the incident represents a clear breach of trust that could potentially cause them to lose faith in technology altogether.
I am one of those who has long been skeptical of financial technology or fintech. Without the pandemic, which encouraged cashless transactions, I doubt I would have ever considered putting my money in a digital bank. Over time, however, I found the convenience of digital money to be more and more undeniable. Paying my bills no longer required me to wait in line; I could do it with a few clicks on my phone. Purchasing necessary items, such as prepaid loading and other essentials, has become a quick and hassle-free process.
My initial resistance to digital banking was rooted in concerns that many others share: I was uncomfortable with trusting my financial information to an anonymous entity, fearing it would compromise my privacy. I had trust issues, I was afraid that my money could be easily withdrawn, and I also doubted whether automatic communication could really work for me. At the time, user interfaces were clunky, with limited options, and the overall experience felt impersonal. It was clear that improvements needed to be made to make the app feel less like a machine and more like an extension of human interaction.
Despite my initial apprehensions, I realized that adopting digital banking is increasingly inevitable. The world is moving towards a technological paradigm in which digital transactions are no longer just an option but a necessity. That said, it is essential that digital literacy continues to grow across all age groups, to enable individuals to better protect themselves against incidents like the one that happened this weekend. Likewise, the concept of digital sovereignty is also important, where humans – not machines – remain in charge. Technology must serve the individual and not the other way around.
While the weekend incident may be isolated, it cannot change the fact that it has raised serious concerns among both skeptics and loyal users of fintech. At this point, fintech app developers need to step up their efforts to secure users’ digital assets, even if it requires significant investment. In the long term, this investment will pay off. Regaining user trust and encouraging others to adopt these technologies will be a monumental achievement in itself. Ultimately, we all need to be extremely careful when it comes to our digital security. Today, our most valuable assets are not gold or property, but the data we share at our fingertips.