Is holiday shopping with digital wallets safe?

ATLANTA, Ga. (Atlanta News First) – Most people plan to shop online this holiday season, according to a recent consumer report, and you may notice several new digital payment options.

More websites are offering alternative ways to pay, and banks are now encouraging new digital wallets.

The goal for some of these payment options is to finance — allowing you to pay installments to them with interest — but some are used through big banks with the goal to keep your information secure.

For example, when you pay through Apple Wallet, the company masks your credit card information so you’re not sharing it with various websites or merchants.

Sharing your card information online can be dangerous if you’re on a look-alike fake website, accidentally click on a phishing scam, or if the company is hacked in a data breach.

Bank-to-bank transfers like Zelle rely on your email or phone number to protect your banking info. The latest digital payment option now offered through some of the big banks, Paze, is similar to Zelle.

People across the country have been seeing this option pop up, and some were even automatically enrolled through their bank.

Paze works with the email associated with your bank account, and then verifies through a PIN sent to your phone. According to the company, this is so you don’t have to enter your credit card info on websites, create a login, or even download an app.

However, Atlanta News First Investigates found some concerns from customers with Chase Bank who say they were automatically enrolled. If this happens and you don’t want to take part, the company said anyone can opt out on their website.

• Here is a full list of merchants currently offering Paze.
• Banks and credit unions currently offering Paze include Wells Fargo, Capital One, Bank of America, Chase Bank, PNC, Truist, and U.S. Bank.

Takeaways

• Always check the URL of the website before making any purchase. Make sure it starts with “https.”
• More digital wallet safety tips from the Department of Financial Protection and Innovation (DFPI):
  • Research your digital wallet provider. Investigate your digital wallet’s track record for safeguarding private information and data.
  • Secure your device and app. Implement all available PIN, password, and biometric authentication options to secure your device and the app.
  • Exercise caution with transactions. Limit your transactions to individuals or businesses you trust and establish a spending cap on large purchases and transfers.
  • Monitor transaction activity. Regularly monitor your accounts online, set up alerts for potential fraud or significant spending, and consistently review your payment history to quickly identify any declined or suspicious transactions.
  • Move any money received from your app to your insured account. When you receive money in your app account, send yourself a reminder email to move the money to your insured account.
  • Separate social media from financial apps. Avoid linking your digital wallet app to social media platforms.
  • Steer clear of unsecured Wi-Fi networks. Never access your digital wallet services on an unsecured Wi-Fi network. Exercise additional caution when shopping or using financial apps on public Wi-Fi. Unsecured networks give criminals an open door to access your device and steal your personal financial information.
  • Prepare for the possibility of device loss. If your device goes missing, use the security software on your smartphone to lock it, erase personal information, and activate an alarm if necessary.

If you suspect fraud or deception involving your digital wallet or payment app, promptly report it to the DFPI by filing a complaint, contact ask.DFP@dfpi.ca.gov, or call (866) 275-2677.

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