Protect yourself against digital wallet fraud

Digital wallets are incredibly safe — but scammers have found ways to exploit them. Read on to learn how digital wallet fraud works and how to protect yourself.

Scammers steal your card details and add them to their own digital wallet on a device they control. They get this information through social engineering or by buying stolen data off the dark web.

There are three common methods:

• Smishing: You get a suspicious SMS with a link claiming to be N26 or another service, like a postal carrier. The message asks for your personal details or card credentials. Learn more about smishing and how to spot it.
• Vishing: You get a phone call from someone pretending to work for N26 or another organisation. They claim they need your card details. This is always a scam — no bank will ever cold call you to ask for your card details over the phone.
• Data breaches: Your payment details are exposed through a hack or sold on the dark web, leaving your account vulnerable.

If scammers get your card details, they can add your card to their digital wallet, attempt a tokenization (card confirmation), and make unauthorized payments.

Once scammers add your card to their digital wallet, they need one final step — called "tokenization." This is the card confirmation step. Scammers use social engineering tactics to trick you into approving it.

There are two ways they do this:

• One-time password: Your digital wallet sends a confirmation request and prompts you to enter an SMS code sent to your paired device. Scammers initiate the tokenization themselves, then convince you to share that SMS code with them.
• In-app confirmation: Your digital wallet prompts you to log in to your N26 account to confirm a tokenization. Scammers initiate the request and convince you to approve it from your N26 account.

If scammers succeed, they can immediately make irreversible card payments — and your money may never be recovered.

These steps help protect your N26 account from digital wallet fraud:

• Trust your instincts. Don't engage with unknown senders or messages that feel off.
• Never share personal or banking details with anyone you don't know and trust completely.
• Never accept a digital wallet action that you didn't start from the N26 app yourself.
• Never share an SMS code with anyone, for any reason.
• Install a spam blocker to filter suspicious messages before they reach you.
• Enable Two-Factor Authentication for an extra layer of account security.
• Enable Face ID if your smartphone supports it.
• Don't save your card details on websites that seem suspicious.
• Take your time. Never let anyone pressure you into acting fast.

If you get a suspicious message or phone call — even if you're not sure whether it's a scam — ask for a specialist in the support chat (new tab) to report the incident.

If you approved a virtual card, or got a confirmation code followed by a payment you didn't make, lock your card in the N26 app immediately.