Three ways to optimize your credit card security

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Nowadays, many of us rely on credit and debit cards to make the majority of our payments. Especially with the rise in contactless and phone payment options, it’s often quicker and easier to make these methods our default, rather than carrying cash. Additionally, using a credit card gives you the ability to spend money that you don’t yet have – something that many individuals are now utilizing, especially given the current economic situation. In fact, at the end of 2023, credit card debt in America reached a new record of $1 trillion.

But with the reliance on credit cards comes an increased risk. Fraudsters are getting increasingly sophisticated, running scams that trick people into giving over their information and money with minimal red flags. Fortunately, there are some things you can do to make it harder for them.

Use a digital wallet

It might feel like giving your details to a third-party app like Google Pay isn’t the best way to make sure they remain secure. After all, that’s one more platform that has your information. However, using a digital wallet can actually be a way to add an extra layer of security to your card.

Your card details are encoded using a process called tokenization – substitute card details are created by the app for the sole purpose of being used with shopping merchants. You can’t use these details for anything else such as over-the-phone payments or direct transfers. This means that even if a scammer got hold of your phone, they wouldn’t have access to your actual information. Additionally, you’ll generally need to provide biometrics such as your fingerprint before the transaction takes place.

Set up purchase alerts

Spotting suspicious transactions is an important part of maintaining your credit card security. Shockingly, research shows that one in five Americans have errors on their credit reports, and these can negatively affect your credit score. However, if you make sure you’re aware of every outgoing, you can flag any suspicious activity and stop it reaching your credit file.

Setting up purchase alerts on your phone can help you spot anything that doesn’t quite seem right. By acting quickly, you can prevent scammers from taking any more of your money, and stand the best chance of getting your lost funds back from your bank.

If you want to go a step further, requiring two-factor authentication for any purchases via your banking app can even stop you losing money in the first place, as the transaction won’t be able to go through.

Don’t automatically save your credit card details

It’s tempting to save your credit card details to your account or to your browser for convenience, but this means you’re trusting that provider to keep your information safe. Scammers may target specific companies and try to steal lots of sensitive information, and you can unwittingly become part of this. Instead, make sure that you’re only sharing your credit card details on a need-to-know basis.

This approach can also protect you if your phone or laptop is lost or stolen. Whilst a criminal may be able to unlock your device, they’re unlikely to be able to access biometrically secure payment or banking apps. Don’t hand them your payment information via saving it to your phone browser.

Just by taking these simple steps, you can make it harder for scammers to target your credit card – well worth the small amount of time and effort.