As technology advances, digital money or digital currency has recently been introduced to the world recently. It refers to the exchange of currencies that only exists in electric form. For example, cryptocurrencies like Bitcoin and Ethereum, is one the of the most prominent digital money most people know of. It is transferred in the form of electronic codes in computers, they have no physical counterparts. As digital money emerges, tangible cash is becoming less common. E-Wallets, digital payment cards and online payment platforms such as PayPal are other types that is widely used.
As highlighted, cryptocurrency is one of the most prominent form of digital money. This form is less likely to be counterfeited or double charged as it is protected by cryptography. Cryptocurrency occurs in a decentralized network which is derived from blockchain technology, which basically means a ledger kept within network of computers. What make cryptocurrencies different than others is that they are not issued by the central bank or the government. This led to cryptocurrencies being free from government intervention or manipulation.
In recent years, digital money is widely used by people. The rise of e-commerce and rising demand in convenient payments which is secure has driven consumers to use this method. Although there are also people who question whether there’s a possibility for fraud or hacking, people view digital money as a faster and much more efficient method to control their finances.
Risks of Digital Money
Though this method is seen as more efficient, there are still possibilities that payment fraud can occur. Since use of digital money is increasing, the risk of payment fraud also increases. There are methods of payment frauds, unauthorized transaction is the most common one. This action will be carried out by a cybercriminal with the intention to steal your money without even knowing who stole it. The transactions are carried out online, there is a low risk of you knowing who did the crime. Since your sensitive information is stored digitally, cybercriminals have high opportunities to access your information and commit scam. The security of for this type of transaction is continuously increasing and committing fraud has become highly complex for cybercriminals as well.