Protecting your money when using a digital wallet

Digital wallets are fast, convenient and they draw mixed opinions.

A 2024 Consumer Reports survey found about 75% of Americans have used digital wallets. Of those, about four in 10 use one every week, but that convenience carries some risk.

“If someone gets into your digital wallet, they could access your money in seconds,” Consumer Reports’ Lisa Gill said. “That’s why it’s so important to add every layer of protection you can.”

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Make sure your digital wallet stays locked. Consumer Reports recommends setting a face scan, fingerprint, or passcode to make a payment. Not all apps do this by default, so you may need to turn that feature on.

Consumer Reports also warns against scams.

“Scams involving digital wallet payment apps have become a serious problem,” Gill said. “Some consumers have lost thousands of dollars, so it’s important to stay vigilant to avoid becoming a victim.”

To lower your risk, Consumer Reports says to enable transaction alerts for every purchase and check your account balances regularly.

Finally, make sure your phone can be found remotely, in case it disappears.

On an iPhone, go to Settings, tap your name, then “Find My” and make sure “Find My iPhone” is on.

On Android phones it’s called “Find My Device.”

The more you can do to protect your money, the better.

Consumer Reports also recommends setting up recurring payments through your bank — not a digital wallet. If there’s an issue with the app, you could miss a payment and get hit with late fees.

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