Smartphones are vulnerable to various security risks, such as theft, loss, hacking, or malware attacks. Still, about 17 percent of Indians store important financial passwords (bank, ATM/ debit/credit card) in their smartphone contact list or mobile notes, a report said on Wednesday.
Because of convenience and ease, many of us store passwords on smartphones. This can be convenient when you need to access your financial accounts on the go quickly. Unfortunately, many smartphones may not provide end-to-end encryption for stored passwords, which means that if someone gains access to your smartphone, they may be able to retrieve your passwords in plain text. This can put your financial accounts at risk, especially if your smartphone is not properly secured with strong passwords or additional security measures.
While 30 percent said they share important financial passwords with family members and staff, etc., 8 percent said they store sensitive information in mobile phone notes while 9 percent in the mobile contact list, according to the report by online community platform LocalCircles.
According to the report, 24 percent of the respondents shared that mobile phones have been their preferred choice, whether as notes, in the contact list, in the password app or in another place in the device.
Only 14 percent stated that they “have them memorised,” while 18 percent have such details stored “on my computer/laptop” and 39 percent have such critical personal data stored in “another place/way”.
A whopping 88 percent of those surveyed said they have shared their Aadhaar card for various applications, proofs, and bookings, etc.
“With databases that can be joined easily and reports indicating that AI can crack over 50 per cent passwords in under one minute, the average Indian is likely to be increasingly vulnerable,” the findings showed.
The mobile notes are also insecure and do not have a password to secure them, making users vulnerable.
Some people use easy-to-remember passwords, while others have one complex password for all their accounts.
“Neither option is recommended since it becomes easy for identity thieves and other criminals to steal your credentials,” the report said.
Some service providers recommend using a password manager software that helps users create strong passwords, store them in a digital vault protected by a single master password, and then retrieve them as needed when logging into accounts.
This option may not be feasible or attractive for a large majority as it involves payment of monthly fees.
It’s essential to carefully consider the security risks associated with storing financial passwords in smartphones and take appropriate precautions, such as using a trusted password manager with strong encryption and additional security features, regularly updating passwords, using biometric authentication or PIN codes for device security, keeping your smartphone updated with the latest security patches, and following best practices for smartphone security to mitigate potential risks.
