As if losing your phone wasn't already scary enough.
The vast majority of Americans have a cellphone. Pew Research data from 2021 shows that 97% of Americans do, and 85% of those are smartphones. It's kind of astonishing how quickly mobile phone technology advanced and we all got on board; like many people, I would be lost without my smartphone.
This phone obsession has also led many people to use mobile wallets to make paying for purchases easier. Gone are the days when you had to carry around an actual wallet with your credit cards and cash in it to pay for things. Now you can tap your phone on the payment reader at the checkout and be on your way. It's very easy to put your credit card info on your phone in your Apple Pay, Google Pay, or other mobile wallet. But just how do these apps work?
How do mobile wallets work?
If you're one of the 85% of Americans with a smartphone, chances are it has a mobile wallet app built right in. These are fairly straightforward to set up -- you'll be prompted to enter card numbers, expiration dates, CVV numbers, and your own information. You may have to verify the card information via two-factor authentication. This is for your protection and to ensure that someone who stole your credit card information can't just add it to their own mobile wallet without some additional legwork (such as also getting access to your email or cellphone number).
A really cool feature of mobile wallets is that your actual credit card number won't be transmitted when you use it to pay. Instead, your mobile wallet will generate a unique encrypted number instead, saving you from the possibility that a skimmer embedded in a credit card reader is capturing your credit card number. The cashier won't know your actual credit card number either. This is one of the ways that your credit card info is kept safe on your phone. But will you have to worry about other safety issues?
Are mobile wallets safe?
Nothing in life is entirely without risk, but the features mentioned above make mobile wallets extremely secure. A thief would have to not only steal your phone, but also be able to access the data in it, and if you've set your phone up with facial recognition, fingerprint access, or a good old-fashioned passcode, your data is secure. (And you can remotely erase that data if your phone goes missing.)
And remember, you don't even have to take out a credit card to use it to pay for a purchase, lessening the chances your physical card will be stolen (or accidentally left at the store or restaurant where you're using it). You might even go so far as to stop carrying around your credit cards altogether, but I wouldn't necessarily recommend this.
Mobile pay technology hasn't been universally adopted, and there are still many places that aren't capable of processing a payment like this, so you'll need that physical card. However, it's a good idea to keep credit cards that aren't your "daily drivers," so to speak, in a safe place at home. For example, I don't use my travel credit card often, so I don't keep it in my wallet; whereas, I use my grocery rewards credit card at least once a week, so in my wallet it stays.
What can you do to keep your data safe?
It's even more vital to keep your smartphone safe if your credit card info is on it, and as such, it's worth reviewing the steps for what to do if you lose your phone, namely:
- Attempt to find it before you panic.
- Remotely erase your phone's data.
- Contact your mobile carrier and the police.
- Change your account log-ins and monitor your financial accounts.
The Federal Communications Commission (FCC) provided some other tips for safe mobile wallet usage:
- Don't leave your smartphone visible and unattended, like in your parked car.
- Watch your surroundings and be discreet when you use your phone.
- Don't use mobile payment services over unsecured wifi.
- Always choose unique passwords.
- Closely monitor the financial accounts linked to your phone.
These are all great tips for general smartphone and financial security, and they're worth following. We're living in the future, and while technology has made our lives easier, it's important not to get complacent. Keep your phone secure and private to keep your credit card info safe as well.
FAQs
Are mobile wallets secure? Yes, storing a credit card on your phone is secure. In fact, a primary benefit of credit cards is that they are already a more secure payment method than cash or check, and mobile payments take that to the next level — it's one of the most secure ways to pay.
Is it safe to give my credit card details over the phone? ›
Only provide your card details if you called them.
Never make a credit card payment over the phone if a company calls you unexpectedly. Scammers attempt to steal your personal information by calling you and posing as a legitimate business.
Can someone steal your credit card info from your phone? ›
Installing malware or spyware on your device
This harmful software can steal sensitive data from your devices and share it with hackers. One common type of criminal software — called a keylogger — records everything you type. This includes credit card numbers, passwords, emails, and more, and sends them to the hacker.
Is it safe to put my credit card in my phone case? ›
Not just the speaker magnet, but most of the magnets inside phone cases and clasps are usually very weak. There's no risk of your phone case causing malfunction or demagnetizing your cards. This means that things like wallet phone cases and flip phone cases are safe to use alongside your credit card.
Is it safe to put my card on my phone? ›
Are digital wallets safe? In general, digital wallets are considered much safer than using physical credit cards, which can be more easily lost or stolen.
Is it safe to have a credit card app on your phone? ›
Digital wallets like Google Pay and Apple Pay are generally considered safe because they follow the global security standards set by the PCI. In fact, they're often considered safer to use than physical cards.
What is the safest way to send credit card information? ›
The most secure method to send your credit card info is through a secure file-sharing platform like Trustworthy.com.
How can you safeguard your credit card information on your phone? ›
8 Ways to Protect Your Credit Card Online
- (1) Limit Your Risk With One Account. ...
- (2) Get Virtual Account Numbers. ...
- (3) Create Unique Passwords. ...
- (4) Remember "S Is for Secure" ...
- (5) Use Known, Trusted Sites. ...
- (6) Only Shop on Secure Network. ...
- (7) Use Security Software. ...
- (8) Update to Stay Safe.
Don't provide your CVV when using your credit or debit card in person. Don't make payments over the phone with your credit card, unless you make the call directly and know it's a trusted vendor. Scammers have been known to cold-call victims to perpetrate financial fraud.
What information does a scammer need to access my bank account? ›
The easiest way to become a victim of a bank scam is to share your banking info — e.g., account numbers, PIN codes, social security number — with someone you don't know well and trust. If someone asks for sensitive banking details, proceed with caution.
Bank, debit, or credit card skimming can occur if you use an ATM with a card skimming device installed, pay for something on a dodgy website, swipe your card in the payment machine while making in-store purchases, or even while your cards are in your wallet.
How to avoid getting your credit card hacked? ›
How To Prevent Credit Card Fraud
- Keep Your Credit Card Information Secure. One of the most important ways to prevent credit card fraud is to keep your information safe. ...
- Monitor Your Credit Regularly. ...
- Use Secure Websites for Online Purchases. ...
- Be Aware of Phishing and Skimming Scams. ...
- Use Additional Security Measures.
The Device Account Number in the Secure Element is isolated from iOS, watchOS, and macOS, is never stored on Apple servers, and is never backed up to iCloud. Apple doesn't store or have access to the original card numbers of credit, debit, or prepaid cards that you add to Apple Pay.
Is it safe to give credit card details over the phone? ›
- Never give out your card details over the phone. Make sure the business you are paying is using a service where you can type your card details securely using your phone keypad. - Never provide your card details if you receive a call out of the blue.
Should I keep my card with my phone? ›
What should I do? The best way to protect yourself is to prevent criminals from gaining access to your payment card, any form of ID and a phone all at the same time. So never keep these items together in a place where they might be stolen.
Is it safe to use a credit card on mobile data? ›
Is it safe to pay by a credit card online? Yes, absolutely, much safer than using a debit card.
Is it safe to put your credit card on your iPhone? ›
Apple Pay is designed with your security and privacy in mind, making it a simpler and more secure way to pay than using your physical credit, debit, and prepaid cards. Apple Pay uses security features built-in to the hardware and software of your device to help protect your transactions.
Is it safer to apply for a credit card online or on the phone? ›
What you'll learn: It's usually safe to apply for a credit card online, especially if you're on the credit card issuer's official website and using a secure connection.
Is it secure to pay with credit card over the phone? ›
Many people ask whether taking credit card payments over the phone is safe. The answer is – yes, as long as you follow the right protocols. The biggest risks associated with phone payments comes from failing to follow PCI DSS compliance.
