Digital wallet fraud: how to stay protected

The days of criminals needing your bank card to steal your money are over. As more people use digital wallets to pay for things, criminals are finding new ways to take advantage.

What is digital wallet fraud?

Digital wallet fraud happens when someone uses your digital wallet without your permission. This can include apps such as PayPal, Google Pay, Apple Pay, or Samsung Pay.

It can happen if:

• your phone is stolen
• your account is hacked
• you’re tricked into approving a payment

Criminals often contact people through text messages, fake websites, or social media offers. They may claim you’re entitled to help with energy bills, a refund, or a great online deal. To proceed, they ask for your bank or card details.

Once they have this information, the fraudster may ask you to share a one-time passcode (OTP) sent by your bank. They use this code to add your payment card to a digital wallet on their own phone. This allows them to spend your money as they wish.

Often, criminals don’t use the card straight away. They may wait weeks or even months before spending, as older cards in digital wallets are less likely to trigger bank security alerts.

Warning signs to look out for

You may be targeted if:

• you receive an unexpected one-time passcode (OTP)
• you get a message claiming to be from a digital wallet provider
• you’re alerted to a login attempt from an unfamiliar device or location
• you’re sent a fake QR code or payment link
• a stranger asks you to send money through a digital wallet app
• you’re pressured to act quickly
• you notice transactions you don’t recognise

How to stay protected

You can reduce your risk by:

• always locking your phone when you’re not using it
• never sharing one-time passcodes 
• keeping your phone and apps updated with the latest software
• turning on two-factor authentication (2FA)
• verifying requests directly with your bank using official contact details
• using strong passwords and biometric security, such as fingerprint or face ID
• avoiding public or unsecured Wi-Fi when using your digital wallet
• not clicking links in unexpected emails or texts, always open the official app or website instead

What to do if you’ve been scammed

If you think you’ve been scammed:

• contact your bank immediately
• block your card straight away using your banking app or by calling your bank

Staying informed, alert, and cautious is one of the best ways to protect yourself. Being aware of the latest scams can help you stay one step ahead.