Payment apps, like Venmo, Apple Pay, Zelle and even Facebook Messenger, are used by over 90 million Americans, but are they actually secure? This touch-of-a-button technology lets you use actual funds from your bank account or your credit card to send money instantly to friends, family and retailers.
At first glance, some consumers might be a little reluctant to install and use a payment app. After all, anyone who gets a hold of your smartphone could wipe out your bank account, at least in theory. There are safety protocols in place – like two-factor authentication and one-time use PIN numbers – that help make these apps possibly safer than traditional payment methods. A lot of consumers have their smartphone on them at all times and treat it with the utmost safety concerns, so having payment information stored on their device might not seem all that farfetched.
Remember, convenience and security come with a price. Scammers have already victimized payment app users in a variety of ways including in-person scams and account takeover. Before using payment applications, it’s important to understand how to protect yourself.
Lending Your Phone
In this era of always-connected activity, everyone has a phone, but there is still the occasional instance when someone might ask to borrow your device. Many of us might not think anything of it, but when you allow access to your device you are opening up the door to your payment apps. Scammers have been known to ask to use strangers’ phones to make a call, but instead open payment apps and send themselves money.
You can avoid this one—and still be a generous person—by always logging out of your payment app when you are not using it. Also, if someone does need to make a call or send a text, dial the number for them before handing over your phone.
According to Javelin, more than $500 million was lost overall to fraud in 2017 involving a variety of peer-to-peer payments. Remember, all payment options are storing your information and are vulnerable to attacks. One woman had $9,000 debited from her account in increments after a thief gained access to her login. Plus scammers could ask for payments via app to eliminate traceability.
Never send money to individuals you don’t trust or who claim to be a business or government agency; many peer-to-peer transactions are instantaneous and irreversible.
No matter which app you choose, make sure you have enabled all the security features you can. If the app offers one-time PIN numbers or multi-factor authentication, for example, use them. This can keep hackers from accessing your login credentials and stealing your money.
Remember, access to all of your accounts usually starts with your email address or social media accounts. You have to make sure that you are using solid password hygiene on all of your accounts in order to minimize risk of hacking.
With every new type of technology, there are undoubtedly criminals out there who have found some way to take advantage of it. Practice good security protocols that protect your tech tools and be ready to adjust your usage to fit the latest scam reports.