| Are digital wallets safe? Here's what to know as the battle between big banks and Apple Pay heats up | | |  | WED, JAN 25, 2023 | | | | With the increased use of digital wallets, fraudsters have found yet another way to carry out scams in an effort to get a share of the action and separate victims from their hard-earned money.
This means that consumers have to be vigilant when using these digital forms of payment. While it should go without saying, people need to be very cautious about people or businesses they don't know and always verify before sending money for a transaction with a digital wallet.
First, what is a digital wallet? It's simply a digital version of your wallet, typically using a payment app such as Apple Pay, Google Pay, Venmo or Zelle. It allows you to store your credit card, debit card and other types of financial data. Instead of loading all your physical cards into a wallet, you would use a digital wallet to make your payments by using your phone or a smart watch.
A digital wallet can be a faster, easier and more convenient payment option versus swiping plastic credit or debit cards. However, there's a lot of worry about security — which is understandable. While digital wallets are inherently safe, there are precautions everyone should take to make sure sensitive information remains secure.
Here are some steps that experts say you should take to prevent digital wallet fraud: - Always be cautious about giving out your digital wallet information to anyone representing themselves as company support.
- You could install apps on your smart phone that can help you locate it in case it is lost, lock the phone to prevent access by others and wipe out sensitive mobile wallet information from the phone.
- Don't download any apps or software that say they are for payment support.
- Before sending money to someone in your network, confirm that it is a legitimate request by checking in with them.
- Don't reveal personal information on social media that could help give fraudsters input to trick you.
- You could set up your phone for two-factor authentication so that you need to complete an additional layer of verification when signing on to your digital wallet.
- Don't use your digital wallet, and phone, over public wi-fi which could be intercepted by criminals.
- Keep a record of your mobile device's information (such as make, serial number and device identification number) to help identify it if it is lost.
- Keep an eye on your financial accounts to ensure that there are no discrepancies.
For more advice to help you make smart financial decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. Also, join the PF team's weekly Twitter Space, "This Week, Your Wallet," this Friday at 11 a.m. ET. Click here for a recording of last week's episode. | |
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