The Stellar Federation protocol is secured through HTTPS. All data connections from a wallet to the servers have to use HTTPS.
While this is a good step towards security, there is one hole: what if the web server or the federation server gets compromised?

DKIF closes this hole and ensures a signed chain, from the DNS record down to the individual Federation record.

DKIF stands for Domain Key Identified Federation – and it uses concepts and best practices already established in other areas to make the internet a safer place.