Chip maker Qualcomm claimed in a new report that mobile banking apps and e-wallets in India failed to deploy hardware level security to secure online transactions and undermining mobile app security testing.

As web and mobile payment platforms are being used more often for online transactions, the risk of fraud incidents has also increased. The rise in concerns about mobile wallet security and threats to client side and hardware level security are causing customers to think twice about using mobile apps and e-wallets for sending and receiving money. Users are demanding improved security features and more mobile app security testing. To protect customers from losing their money in case of loss or theft of a mobile device, e-wallet giant Paytm recently introduced the “app password” feature that requires a user to enter a password, pattern, PIN or biometric data before accessing the app. The same verification will be required before completing a transaction. The feature is not yet available for Apple devices and only introduced for android app security so far.

Similarly, FreeCharge has allied with Reliance General Insurance Company Limited to deliver free mobile wallet insurance to its customers. A customer’s mobile wallet will be insured for up to INR 20,000 upon the condition that they conduct a transaction at least once a month. When a device is lost or stolen, the customer has to lodge an FIR within 24 hours of the incident and also send an email or make a call to FreeCharge customer care to report the incident. To protect a consumer’s money at all times, FreeCharge has developed a fraud and risk management system, as well as doing further mobile app security testing.

“What we are witnessing is a digital revolution of sorts with an ever increasing focus on digital payment instruments. In keeping with the times, an insurance product around the same was both needed and logical. Through our partnership with FreeCharge, we are taking a step in that direction and hope to play our part in the country’s vision of going cashless,” said Reliance General Insurance‘s Rakesh Jain.

India’s demonetization policy has led to increased adoption of mobile wallets, however, the widespread use of Android devices and the rush to release without doing proper mobile app security testing has the potential to create problems for consumers and companies alike.

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