What Is a Digital Wallet — and How Safe Is It from Hackers?

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In today's world, the quickest and most convenient way to pay for purchases is by using a digital wallet. Throughout the COVID-19 pandemic, the use of digital wallets became more commonplace, in large part because it was a safer, contactless way to pay — as opposed to handing someone a plastic card to swipe. So, are digital wallets here to stay? That seems to be the case, even in the wake of cybersecurity issues.

In a ransomware cyberattack on the Colonial Pipeline, hackers demanded a huge sum of money to relinquish control of the pipeline. Without too much back-and-forth, Colonial Pipeline paid the ransom, and, afterward, the Federal Bureau of Investigation (FBI) was able to recover some of the money from a digital wallet. While that may have been good news for the company, some folks were left questioning the overall security of using a digital wallet. 

Sure, going cashless and card-free is great, but is it a safety risk? We're delving into how digital wallets work and everything else you need to know before using one.