SmartBanking Blog

Do’s and Don’ts of Mobile Payment Apps

                Mobile payment apps offer fast and convenient ways to send money to friends and family. However, they are not immune to fraud and theft. As these apps gain popularity, it is important to learn the do’s and don’ts of using these apps so you can safeguard your funds and personal information.

                Because mobile payment apps generally work by asking you to link a credit card, debit card, or bank account to the app so your information is stored, fraudsters know that if they can get your information, they can get your money too. The following are ways you can prevent criminals from gaining this information.

Do’s

Do confirm the identity of the person you are sending money to and confirm their information to make sure you are sending money to the correct person.

Do turn off Bluetooth when not using it to avoid criminals hacking your phone, and keep your apps up to date to receive the most recent security features.

Do secure your device by using strong passwords, biometric features, and multi-factor authentication.

Do set up alerts in the payment app and through your bank, and regularly check for any unauthorized payments.

Do choose reputable apps that have good reviews, use multi-factor authentication, and strong encryption to keep your information safe.

Do use a credit card over a debit card or bank account as it will be easier to report fraud and possibly recoup your money.

Do report unauthorized usage immediately to the app, your financial institution, and to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.

Don’ts

Do not click links from unsolicited emails or text messages asking you to send money.

Do not ever share your credentials, especially verification codes or passwords.

Do not trust QR codes on flyers, posters, or emails as they can be fake or malicious.

Do not send money to claim a prize or collect sweepstakes winnings – especially if you never entered the sweepstakes or competition.

Do not rely on apps to be able to issue a hold or stop payment – many cannot recall the money once it has left your account.

Do not pay in full until you receive a request from the person and have verified their identity.

                Mobile payment apps are an excellent way to pay friends and family on the go. As with most technology, the important pieces to remember are: always verify the person, always guard your account information, and never trust unsolicited communication.

How to Safely Use Mobile Payment Apps and Services (ftc.gov)

How to Use Mobile Payments Safely: Tips and Tricks (linkedin.com)

Mobile payments: 7 ways to be more secure (norton.com)

Avoid Making Costly Mistakes with Your Mobile Payment Apps | McAfee Blog

Mobile Payment Apps: How To Avoid a Scam When You Use One | Consumer Advice (ftc.gov)