The Risks of Using Digital Banks and E-Wallets for Investments

Digital banks and E-wallets aren’t limited to basic financial transactions; they also offer investment payout solutions. However, the ease of doing your financial management matters in these apps also has its own respective risks, which might put your investment and other savings in jeopardy.

Here are some things to look out for:

Daily transaction limits

When it comes to managing your finances through banks, digital banks, or e-wallets, there’s a critical detail you should be aware of – daily transaction limits. These limits act as a safeguard, preventing exorbitant transactions from flying under the radar of both your bank and government authorities. Most often, these limits are set at around PHP500,000 per day. It’s essential to keep this cap in mind, especially if you’re involved in high-return online investments, like cryptocurrencies, or even indulging in digital gaming transactions, such as those for Counter-Strike cosmetics.

Account closures

If you’ve read your digital bank terms and conditions, which I assume you haven’t, there are some important matters to know hence the importance of reading them. One crucial detail hidden in these documents is that banks reserve the right to close your account without any prior notice if they detect suspicious activities.

This is where the daily transaction limit becomes pivotal. To avoid raising red flags, create recognizable patterns when sending and receiving money. Abrupt, significant transactions could trigger unwarranted attention, and that’s something you do not want under any circumstance.

Lose your phone, lose your investments

We’ve discussed in previous articles the importance of security in your digital banks and e-wallet apps. Now, imagine losing your phone. It’s not just a matter of inconvenience; it’s a potential catastrophe for your financial management. Losing your phone means that people with malicious intents could gain access to your investment earnings.

To counter this threat, always have a plan B ready to be initiated at once. Consider having a secondary phone available to swiftly lock all your financial management apps in case of an emergency.

In the realm of digital finance, vigilance is your best friend. Keep these insights in mind to ensure your financial transactions remain secure and your investments stay protected. It’s important to be mindful of the daily transaction limits set by these platforms. These limits act as a safety net to prevent any undue attention from authorities. Moreover, understanding the terms and conditions of your digital bank is essential, as they reserve the right to close your account if suspicious activities arise. To protect your investments, it’s imperative to establish transaction patterns that don’t raise red flags. (GFB)