Millions of people around the world save their credit card and payment transactions on their smartphones to avoid having to carry around too much plastic.
But a financial adviser has warned that users should not link their bank accounts to digital payment apps including Samsung Wallet and Apple Pay.
TikTokers Dean and Alexisthat offer financial advice on their accounts urged users to link only their credit cards instead.
The reason for this is that if someone steals your smartphone, he or she can access the stored information to send themselves money, ultimately draining your bank account.
TikTokers Dean and Alexiswho provide financial advice about their accounts, posted a video telling viewers to remove their bank account from all payment systems on your devices, including Google Pay, Apple Pay and even apps like Starbucks.
“Just don’t link your checks,” Dean warned when asked if Apple Pay is a secure payment method.
‘Link your credit card to it. If you want to be safe, remove your debit card,” he advised.
The video, which has more than 7,000 comments, included a response from a user who said, “My phone was stolen and Apple pocketed $700.”
Apple has stated that its digital payment system is “more secure than using a physical credit, debit or prepaid card.”
The reason could be that the tech giant takes the extra step of encrypting the data, so your actual card information isn’t even in your iCloud.
When money stolen from a bank account is typically harder to get back, while credit card companies typically refund money due to fraudulent charges.
Despite Apple’s assurances that the payment option is 100 percent secure, there are still other ways criminals can gain access to your debit card, including phishing emails asking for some form of payment that will grant them access to your account information.
TikTokers Dean and Alexis, who provide financial advice on their accounts, posted a video telling viewers to delete their bank account information from payment apps like Apple Pay on their phones
Data can also be intercepted by a hacker if Apple Pay is used over an unsecured network or if the device is stolen and security measures are bypassed.
“Losing your phone is often the equivalent of losing your wallet in modern times,” Verizon warned place.
“Smartphones contain, among other things, your credit cards, contact information, calendars, personal photos and social media accounts,” the report continued.
“If your phone gets into the wrong hands, a wealth of valuable information could be spread or misused.”
Earlier this year, instant payment apps such as Venmo, Zelle and Cash App were accused of putting customers at risk for fraud, “leaking significant amounts of money into bank accounts,” Manhattan District Attorney Alvin Bragg alleged.
He warned that there has been an increase in reported incidents in New York City, but added that it is a national issue.
“No longer is the smartphone itself the most lucrative target for scammers and robbers – it’s the financial apps inside,” Bragg said in a rack.
“Thousands or even tens of thousands can be removed from financial accounts in seconds with just a few taps.”
“This scam involves an unauthorized user gaining access to unlocked devices and then withdrawing significant amounts of money from bank accounts, making purchases using mobile financial applications, and using financial information from the applications to open new accounts,” the statement said.
The Federal Investigation Bureau has warned that skimmers are using hidden cameras, skimmer devices (a card reader disguised to appear as if it is part of an ATM), and keyboard overlays to steal your account information.
Skimming attacks cost financial institutions and consumers more than $1 billion annually and usually occur at ATMs, point-of-sale (POS) terminals or fuel pumps, the report said. FBI.
Once criminals obtain the card’s details or PINs, they use the details to create fake credit cards that allow them to easily steal from their victims’ accounts.
Last year, the total number of compromised credit cards rose a shocking 96 percent from 2022, impacting 315,000 cards and 3,500 financial institutions, according to a FICO report.