Should we can trust the digital wallet ?

The recent ongoing episode of Mobikwik shows how not to secure the digital wallet, It was the largest KYC breach in India ever., where there are 100 million individuals bank details are exposed and it is to be noted that there is no action been taken by the concerned authorities in the country.

There is a question arises on the issue on the data protection, does more harm than good. Whereas the cyber security has to be a transparent, cooperative exercise.

A security researcher Rajashekhar Rajaharia thought he was doing his duty when twice — on February 26 and March 4 — he tried to draw the attention of the Mobikwik management to what many believe is the largest ever data hack in Indian history.

Mobikwik deals with millions of customers’ data, including sensitive personal information. All that Rajashekhar wanted was for the company to inform the users of the breach and the steps taken to address the situation. It is surprised to note that the company is doing the counterattack and calling him “media crazed” and also saying to take legal action against him.

The company CEO speaks over the Twitter something unrelated statement on “made in India” mark of the business which had nothing to do with data security. He keep on saying on the data leak could have happened from some other platforms. The cause for worry also lies in the fact that the anonymous hacker who has posted this data claims that the KYC details were used to successfully take micro loans.

Mobikwik is in the process of coming out with its Initial Public Offering and the news is definitely not looking in favour of them . Sources said, the Ministry of Corporate Affairs is investigating on data breaches and can also take some action if they found guilty .

Over the last year, the need for quick passage of the Personal Data Protection Bill 2019 (PDPB) has been raised many times to address similar situations. That is because under the present set of laws, data breach cannot be effectively penalised if the company decides to brazen it out and the government is not willing to hold the bull by the horn.