Ways to protect your digital wallet
Quick insights
- Strong passwords and using biometric authentication for payments may help to protect your digital wallet.
- Turning on transaction alerts and reviewing account activity regularly can help you spot fraudulent transactions quicker.
- If your phone is lost or stolen, locking your cards and contacting your bank may help prevent fraudulent charges from your digital wallet.
Digital wallets are becoming increasingly popular with consumers as a way to pay online, in-app and in-person. If you’ve been using or are considering using a digital wallet, you may want to think about how to keep the information you put into it secure.
Digital wallets are designed to keep your card details private—here are some ways to help keep your wallet (and phone) protected in a few quick steps.
Understanding digital wallets
A digital wallet securely stores payment information and passwords for payment methods and websites. Digital wallets can be used with mobile payment systems or can be used as an online payment method, depending on the platform.
They may also be able to store details such as loyalty card information, personal identification, insurance cards and digital coupons.
A digital wallet can offer some benefits including:
- Security
- Convenience
- Speed
Digital wallets also may integrate budgeting and spending tracking tools in their platform to help users manage their finances.
Methods for securing your digital wallet
Digital wallets often have built in security features. Many digital wallets use multi-factor authentication, biometric data or passcodes for an added layer of security when making purchases. In addition, they often mask card and account information using encryption or tokenization to help protect your card’s info during a transaction.
There also are ways you can proactively protect your digital wallet to enhance its security. Consumers looking for ways to protect and secure their digital wallet may want to consider the following tips:
Using strong passwords and biometrics
A long, complex and unique password for your digital wallet can help enhance security and should include a mix of letters, numbers and special characters. A password manager can also generate and store complex passwords securely.
In addition, setting up biometric verification can add a layer of payment protection. Biometrics typically use fingerprint or facial recognition as a means of verifying your identity before a purchase can be completed.
Enabling two-factor authentication
Many digital wallets offer two-step verification when using it as a payment option. Two-factor authentication means you must verify your identity more than one way before the transaction can complete. Verification is dependent on the wallet provider but may include a combination of passcodes, passwords or biometrics.
Enabling account notifications
Account notifications may alert you to suspicious spending or charges. Enabling account notifications through your bank or card issuer may help you spot fraudulent notifications sooner.
Protecting your device
Many smartphones come with digital wallets preloaded into the operating system. Keeping your digital wallet secure may also mean securing your phone.
You may want to practice phone security measures as well, including:
- Securing your lock screen
- Regularly updating your phone’s operating system
- Enabling biometric security features
How to prevent common scams
You may be concerned about protecting your phone from unlawful use. There are some actions you can take to help prevent someone from stealing your phone’s information, including:
Using physical device protection
You may want to consider using a case or sleeve to protect your phone. These cases are designed with materials intended to limit electromagnetic fields, which could help prevent scanners from reading your device’s data, potentially including information from your digital wallet.
Disable Bluetooth
Bluetooth can be used to make unauthorized connections to your device. You may want to disable this feature when you are not actively using it to protect your phone.
Use public Wi-Fi cautiously
Public Wi-Fi networks can be insecure and may provide an opportunity to intercept data. When possible, use a virtual private network when connecting to public Wi-Fi and avoid making significant transactions when using public wireless networks.
What to do if your digital wallet is compromised
If your digital wallet is compromised, there are actions you can take to help prevent or limit fraudulent transactions from occurring. A few options include:
- Locking your phone and/or accounts as soon as possible
- Removing card information from your wallet
- Changing account passwords, including digital wallet logins, email and bank or credit card accounts
- Reviewing transactions and setting alerts through your credit card or bank accounts
If possible, you may want to transfer your payment information to a new wallet. When setting up the new wallet, it may help to review and adopt security measures, such as two-factor authentication.
In summary
Digital wallets can store multiple payment types and sensitive bank information. To protect your digital wallet, it may help to create strong passwords and regularly update your wallet’s software. You may want to consider using an RFID blocking phone case if you’re concerned about unauthorized scanning. If your digital wallet has been compromised, reach out to your digital wallet provider, change your passwords and monitor your accounts for unusual or fraudulent activity.
