Rapid technological changes make it easier than ever to make payments for all types of purchases without carrying cash around. People can pay at the register with the swipe of their credit card, or even a simple tap from their smartphone or smartwatch allows for payment processing.
Despite the easing of payment methods, has deregulation made us more susceptible to fraud when we use digital forms of payment? There is a degree of public concern given that searches for ‘debit card pay fraud’ and ‘Apple pay fraud’ have increased by 87 percent and 55 percent, respectively, this past month, causing many to rethink how they pay for goods and services.
To help you understand the potential risks regarding various payment methods currently available to us and ways to avoid them, Marcus Arcabascio, financial expert and founder of banking and credit sites Bank-Locations and Customer Service Number has explained to Digital Journal about some valuable tips on the riskiest payment methods and how to steer clear of them.
Debit Cards
Debit cards directly link to bank accounts, accessing savings accounts. When people use debit cards to make purchases, they risk potential criminals accessing our card information and draining our accounts.
“If you absolutely must use your debit card, make sure that you use the chip instead of the credit card magnetic strip,” says Arcabascio.
The chip creates a unique transaction code every time it is used, but criminals can easily copy the information on the magnetic strip.
Saved Credit Card Information
When people save their credit card information in their favourite online stores, they run the risk of security breaches. The data is kept for in the stores’ database to make checkout more accessible and faster. However, if their security is compromised, the credit card information is at risk.
“If you decide to leave your credit card information saved online, create a strong and unique password that makes it harder for others to gain access. Enable two-factor authorization to add an extra layer of security for your credit cards,” suggests Arcabascio.
Remember to always check your credit card statements for any fraudulent activity.
Apple Pay and Google Pay
Apple Pay and Google Pay are generally safe because they use tokenization, which creates a unique code each time a purchase is made. On top of that, the actual credit card number is never shared with the store, ensuring that it is kept secure, for the most part.
“Apple Pay and Google Pay secure a lot of your essential personal information, including credit card numbers. This places your information at risk for cyber security attacks,” says Arcabascio.
To make it more difficult for hackers to access your information, Arcabascio advises enabling a passcode or touch ID to protect financial information if a device is lost. Arcabascio reminds readers to avoid clicking on suspicious emails or links, and limit access to your device when it is locked.
Storing Information on Phones or Computers
Saving payment information on a device is convenient but increases the risk of fraud. Arcabascio notes that payment information is easily accessed if a device is lost, stolen, or hacked.
To enhance the security of stored information, Arcabascio advises regularly updating browser and devices to ensure that each user have the latest security protections.
Arcabascio concludes saying that the best way to make payments online is to use a credit card. Using digital payment methods are safe, so long as people take the proper precautions to enhance the security surrounding them.
