Wallet-wiping: the five-minute hack that could protect you from fraud

Key takeaways

• Fraud can continue even after you cancel a card because some merchants automatically receive updated card details through card‑updater services.

• “Wallet wiping” stops this by having your bank remove old card information from online accounts and wallets, preventing new details being shared with merchants.

• Opting out of updater schemes and following safety tips - like avoiding stored card details, limiting digital wallets, enabling alerts, strengthening passwords, and using RFID‑blocking wallets - helps reduce the risk of repeat fraud

Fraud remains one of the most significant and fastest-growing financial threats, accounting for 40% of all crime in England and Wales, according to recent government figures.¹

But with fraudsters becoming more sophisticated than ever, simply cancelling a card and requesting a replacement may not always stop further fraudulent activity.

Kara Gammell
Personal Finance & Insurance Expert

Why the problem doesn’t always stop with cancelling your card

Many people don’t realise that even after a card is cancelled and replaced - fraudulent activity can sometimes still continue.

In some cases, fraudsters who’ve saved card details online may still be able to receive updated information via certain merchant systems - which could put you at risk of repeat fraud. 

This is because some card updater services - designed to save us the hassle of updating card details - can automatically pass your new card number and expiry date to participating retailers and subscription services when your bank issues a replacement card.

If a criminal has already used your details with an online merchant, there is a risk that they might also receive updated information via these systems. This can allow transactions to resume on the new card without you entering the details again.

The good news is that there are ways to stop your new card information from landing in the wrong hands. 

Wallet wiping: What is it and how can it reduce your risk of repeat fraud 

Wallet wiping is when you effectively wipe all trace of an old card from any accounts or online wallets to prevent it from ever being used again

You can do this by contacting your bank to request a ‘full wipe’ of online accounts and wallets associated with your card.

This can help stop automatic updates being passed to merchants - and may reduce the risk of further fraudulent transactions.

Alternatively, you may be able to opt out of updater schemes altogether by contacting your bank - allowing you to prevent your bank from automatically sharing new card details with merchants for recurring subscriptions.

Be aware that a full wipe may pause any subscriptions linked to your old card, so you’ll need to update with your new card details to keep those services running.

Kara’s 5 top tips to protect yourself from fraud

MoneySuperMarket personal finance expert Kara Gammell shares her top 5 tips to protect yourself against fraud and other scams when using a credit card:

1. Say no to saving payment information

Saving your payment details online can leave you vulnerable to data breaches. To stay safe, avoid storing card information and opt for secure payment methods like Apple Pay or PayPal.

These services add an extra layer of protection and limit the risk of your financial details being compromised. Convenience is great but not at the cost of your security.

2. Limit your  digital wallet

Only keep the cards that you actually use in your Apple Pay, Google Pay, or Samsung Pay wallets.

If your device is lost or stolen, there is a risk that unauthorised payments might be attempted, especially since digital wallets don’t have the £100 contactless limit that is currently applied to physical cards.

3. Set payment notifications

Turning on alerts in your banking app can help you spot unexpected or suspicious transactions quickly, so you can report them as soon as possible.

Monitoring your bank statements regularly for any unauthorised transactions can also help keep track of any suspicious activity on your card. If you notice anything that doesn't look right, report it to your bank immediately.

4. Secure your accounts

Regularly updating your passwords is a simple and effective way to reduce your risk. Use strong, unique passwords that are hard to guess and turn on two-factor authentication for all your accounts wherever possible, making it much harder for fraudsters to access your personal or financial information. 

If you believe your personal information has been compromised, change your passwords for all of your online accounts immediately.

5. Use an RFID-blocking wallet

These wallets use metal layers to block radio waves that skimming devices use to read card data, which may help reduce the risk of some types of contactless theft.

<sup>Sources 
1. https://www.gov.uk/government/news/independent-review-turns-to-tackling-britains-biggest-crime</sup>