May 9, 2019

Phone in hand with the logos of mobile pay apps floating off to the sideThe summer months are on the horizon and with them come impromptu trips and outings with friends! Mobile pay apps allow you to make purchases and send money from your smartphone. You can make purchases at stores or restaurants or even send money to your friends when you split costs but you don't have the cash to pay them back. Apps like

  • Apple Pay
  • PayPal
  • Google Pay
  • Venmo
  • Cashapp
  • Zelle
  • And even the Starbucks app,
allow you to link your credit card information to the app to make easy money transfers. But just like any app where you have to disclose sensitive information, these apps have risks you should be aware of. Here are some tips to help you stay safe utilizing this easy and convenient way to pay.


What are the risks of mobile pay apps?

As convenient as they are, these apps are just as susceptible to potential threats as any other app. Additionally, there are several types of technology that need to work together to make your transaction work quickly and easily, while remaining secure:

The phone- If your phone isn't password protected, stealing your information and money can be as simple as someone picking your phone up.

The app- Not all apps are created equally. Every app works differently, allowing for different potential vulnerabilities.

The wireless technology- peer-to-peer payment apps and apps that allow you to pay with your smartphone in the store are sometimes only as strong as the wireless connections that allow them to operate. If you're using a public network without proper security, the wireless signals can be captured.

Steps for security

  • Use apps that use two-factor authentication- Try only using apps that require additional information after you enter your password to complete a transaction. For example, you might enter your password to access the app and once you attempt to make a transaction, a separate code is sent to your phone to authorize. That way, in case someone is able to access your account they would still need your phone to go through with the payment. At the very least, you should have a password-protected phone and another password to allow you to access the app.

 

  • Use trusted payment platforms- Your best bet is to use the platform that came with your phone ( Apple Pay, Android Pay, etc.). If not, use reputable mobile payment platforms (Chase Pay, Google Pay, PayPal, etc.). Try to stay away from apps that operate like a social networking site, showing your friends and contacts on their "timeline" every time you make a transaction. Believe it or not, you can get a lot of information from public transactions.

 

  • Monitor your credit card account- Don't only check your bank accounts when you think you're running low on funds. Make sure you're checking them regularly to quickly detect suspicious charges. Immediately report unauthorized charges to your credit card company. Also, check app policies to make sure you're comfortable with their conflict resolution system.

Find more information about how your mobile pay app of choice ranks among competitors here.