The advent of digital payment apps has changed the face of traditional finance. Once the domain of cash, checks, and credit and debit cards, a growing number of consumers are foregoing legacy payment methods in favor of these newer, digital counterparts.

In fact, many digital payment apps have evolved, becoming all-purpose financial technology (fintech) applications -- also called digital wallets -- which people use to store credit card information, process transactions, track payments, and even park cash, all from the convenience of your smartphone or other mobile devices.

However, a federal regulator is now warning consumers they should avoid storing cash in popular mobile wallets including (NASDAQ: PYPL), Venmo, or Block's (NYSE: SQ) Square Cash app, because those funds could ultimately be at risk. Here's why.

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Source Fool.com