Tesco has issued a new scam warning in an email sent to its customers ahead of Christmas.

The new scam relates to digital wallets where bank cards and loyalty cards are stored on devices such as mobile phones and smart watches.

While the supermarket has assured customers it is still safe to use digital wallets on your devices, it has shared some tips to avoid being a victim of digital wallet fraud.

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What is digital wallet fraud?

Tesco explained in the email that fraudsters will register someone else’s credit card details to a digital wallet app on their own device.

The cardholder is then tricked into sharing the one-time passcode to complete the set-up.

Fraudsters can then use the victim’s bank card to make purchases by using their own digital wallet.

How to stay safe and avoid being scammed

When adding your bank card details to your digital wallet, your card provider will send a one-time passcode to you either by text or email to confirm that it is you making the request.

How to avoid scams

To learn more about protecting yourself from common scams and reporting fraud, you can visit the Tesco website here.

Tesco has shared three ways you can keep yourself safe from digital wallet fraud.

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It urges people to make sure they never share the passcode with anyone else - your card provider will never ask you to do this.

If you ever receive a passcode that you were not expecting, make sure you contact your card provider immediately.

Tesco Bank explained that customers can also get in touch with its team if they believe they are a victim of digital wallet fraud and urges them to do so immediately.