A digital wallet is an app or online service that stores payment credentials, such as card numbers, tokens, or linked account details, and lets a user make purchases or transfer funds. Some wallets also hold identity data, loyalty cards, or transit passes. In security terms, the wallet is a high-value target because it can combine authentication, payment authorization, and user trust in one place.
Attackers often target digital wallets through phishing, credential stuffing, malicious apps, SIM swapping, or account takeover. Once inside, they may add a new card, initiate unauthorized transfers, or cash out through small, fast transactions that blend in with normal use. Defenses usually include strong authentication, device binding, tokenization, transaction limits, behavioral analytics, and alerts for new payees or unusual payment patterns. For banks and payment providers, securing the wallet means protecting both the user session and the underlying payment rails.