This is how the digital wallet becomes secure

Digital wallets: How the digital wallet becomes secure

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Photo: HID

Digital wallets are the future – more and more people use them not only for payment processes, but also store personal, digital documents there.

IT security

24 November 2022

Digital wallets are becoming more and more popular. Three measures help to increase their security.

The ID in the mobile phone, the driver’s license on the smartwatch – the future of our identity documents is digital. However, digital wallets have particularly strict security requirements because they contain sensitive personal data. HID, the global leader in trusted identity solutions, understands the security measures organizations must take to ensure this.

Digital wallets, i.e. digital wallets, have been known for payment processes for some time. The technology works on all Internet-enabled devices, so many users store their bank details there to conduct secure transactions online.

But digital wallets are not only used for payment transactions, but increasingly also for storing personal digital documents. In the near future, medical prescriptions, travel documents, driving licences, ID cards, insurance information and employee ID cards will all find their place in digital wallets – that is, everything that consumers otherwise carry around physically in the form of paper or plastic cards. Each individual will then be able to authenticate themselves digitally very conveniently.

Three measures increase the security of digital wallets

Of course, there are advantages to being able to access your documents at any time. But the more official ID cards are digitized, the more complex the solutions must be to protect personal data and prevent data abuse. HID recommends the following three measures to make digital wallets as user-friendly and secure as possible.

Creating the right identity infrastructure

An updated infrastructure including NFC and Bluetooth-enabled hardware is the foundation for a connected, mobile experience with digital wallets. In order to issue digital identities, authorities, companies and banks – i.e. everyone who wants to make their official documents available digitally – must create a modern authorization program with security management in the cloud. The respective company’s identity management is the guide to creating the right identity infrastructure. This must be engineered to enable more secure scalability and the adoption of the right mix of technologies, applications and processes to manage digital identities to meet requirements.

Develop internal guidelines for data protection

Digital identities create unique, multifaceted personas with a wealth of associated data. Of course, it makes sense to use collected data to offer customers and employees better products and services. However, data collection is a practice that, without transparency, can easily lead to mistrust and suspicion. Therefore, internal guidelines for data protection and fraud prevention must first be drawn up before digital identity papers can be introduced. Digital identity systems must take into account regionally and globally relevant laws, regulations and industry standards, such as the General Data Protection Regulation (GDPR). Companies must then not fail to communicate the compliance guidelines to the outside world and provide information about how and what data is used and stored to prevent data protection concerns from arising in the first place.

Move security management to the cloud

Digital wallets will be the central storage location for personal documents in the future. In this respect, identity moves to the center of the digital experience. Organizations that use identity as a framework for digital transformation can break down barriers to adoption and reap the full benefits of digital identity verification. However, this approach requires moving security management to the cloud and upgrading infrastructure, including hardware, to support it. This step requires the physical security, operations and IT teams to work closely together to set goals and develop a business case. These investments are absolutely necessary to enable service-oriented growth in the future.

Dr Dennis Lips (left), CEO, and Christian Böhlke, Essentry's Chief Technology Officer

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Dr. Dennis Lips, CEO, and Christian Böhlke, Essentry’s Chief Technology Officer, on automated identification and verification of identities, digitization of visitor management and the start of their business.

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The convenience of digital wallets must be commensurate with security

“Consumers want convenience and seamless experiences. With digital wallets, businesses and governments are now able to completely redesign digital identity verification from access control to financial transactions,” emphasizes Markus Baba, Regional Sales Manager DACH at HID. “With their broad reach and daily touchpoints digital wallets have the potential to impact the way we interact with our homes, with our employers and even with our government – ​​but only if new solutions offer reliability and convenience in a balance between security and privacy.”

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