Just how secure are digital wallets?

Do you ever wonder how safe and secure it is to pay for your transactions using your digital wallet?

Digital wallets are fast and convenient, and it leaves out the hassle of carrying multiple cards. Storing your personal and banking information on your cellphone may seem daunting, but when used properly it can provide an added sense of security.

Arizona Central Credit Union can help keep your money safe with our tips for protecting your personal digital payment information.

Exactly what are digital wallets?

A digital wallet is a software or online service that allows you to make payments electronically and it is most often stored on a cellphone. It can store bank information, credit card, debit card and rewards loyalty card information. By just tapping or scanning your phone at the register or for an online purchase, mobile wallets come in handy when making payments.

Examples of digital wallets include, Apple Pay, Google Pay and Samsung Pay. Wallets are connected directly to bank accounts or cards allowing easy access for online shopping, paying bills and makes it easy to send money to friends and family.

Why use a digital wallet?

The benefits of using digital wallets include convenience, speed, enhanced security and it can help with budget management.

• Convenience – With a digital wallet, card and bank information can be stored on multiple devices, tablets and smartwatches, eliminating the need to carry multiple cards.
• Speed – Using a digital wallet helps make completing transactions less time consuming and convenient to send money to friends and family.
• Enhanced security – Making transactions with a digital wallet adds an extra layer of protection, since payment information uses an advanced encryption and also tokenization, which provides a different card number and a specific code for each transaction.
• Budget management – Added wallet features can provide information on spending habits, schedule spending limit alerts and can help someone stick to a budget.

Digital wallets have security features that protect purchases even when shopping online or making payments. Depending on the digital wallet carrier some may require additional verification steps for payments, making it difficult to allow unauthorized purchases.

Cellphone manufacturers make it easy to lock up wallet information if a phone is lost or stolen. It’s important to know how to set up your digital wallet and what features you have.

Digital wallet security tips

If possible, enable multi-factor authentication (MFA), which requires more than one type of verification such as another password or approving an attempt to log in. Monitor transactions on a frequent basis so that unauthorized payments can be spotted quickly.

It’s important to keep up to date on cellphone software in order to have the best security features installed on your phone. Software developers are responsible for fixing issues to help avoid any system vulnerabilities.

Be careful when using a public Wi-Fi since these networks may not be as protected and can be hacked.  Use a Virtual Private Network (VPN) to encrypt your internet and protect your data.

Another tip is to turn off the automatic connection to Wi-Fi networks on your device to avoid connecting to networks that aren’t secure.

Enable the feature to remotely lock or wipe a cellphone in case it’s stolen or goes missing. Be on the lookout for phishing scams, which can be false emails, texts messages or links that are trying to get personal information, especially when it claims to be from a digital wallet provider.

Be cautious when opening emails and attachments and only open emails from people you know. Email is one of the most common methods cybercriminals use to get information.  Always check the sender’s email address and make sure it looks legitimate.

If you receive a suspicious email and aren’t sure of its legitimacy, reach out immediately to the company to confirm.

Keep your money safe with Arizona Central Credit Union

Digital wallets offer an easy way to manage finances but like any technology there can be risks. By understanding these risks and taking the proper steps to protect your personal information it’s simple to access the benefits of a digital wallet while keeping your data safe.

Arizona Central Credit Union is ready to help with all your banking needs, from checking to savings to loans. If you have any questions, contact us online or call (866) 264-6421.

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