INDIANAPOLIS (WISH) — Whether it’s on your phone or smartwatch, digital wallets make paying for everyday purchases fast and easy.

“I can just take it anywhere,” one shopper said. “Whether it’s on my phone or on my watch, I know I always have something to pay with.”

But not everyone is ready to ditch their wallet and cash.

“I feel more secure just going the old-fashioned way and using cash,” another shopper said.

Like it or not, digital wallets are catching on. A 2024 Consumer Reports survey found about 75% of Americans have used one, and of those, roughly 4 in 10 use it every week.

That convenience, however, comes with potential risks.

“If someone gets into your digital wallet, they could access your money in seconds,” said Lisa Gill, with Consumer Reports. “That’s why it’s so important to add every layer of protection you can.”

Experts recommend locking your digital wallet so payments require a face scan, fingerprint, or passcode. Not all apps have that turned on by default, so you may need to enable it manually.

If your phone is lost or stolen, make sure you can track and erase it remotely before anyone else gets to your data.

• On an iPhone: Go to Settings, tap your name, then Find My, and turn on Find My iPhone.
• On an Android: Use Find My Device, it’s enabled automatically when you sign in with your Google account.

Scams targeting digital wallet users are also on the rise, with some victims losing thousands of dollars. To protect yourself, turn on transaction alerts for every purchase and check your bank or card balances regularly to catch anything unusual right away.

Consumer Reports also suggests setting up recurring payments through your bank instead of a digital wallet. If the app has an issue, you could miss a payment and get hit with late fees.

Digital wallets may be convenient, but experts say a few extra security steps can make all the difference in keeping your money safe.

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