We’re living in a world where speed is a high priority. Messaging and social media apps let us chat with friends in real time. Amazon delivers goods the same day they’re purchased. And you can send money to anyone instantly. The problem is that all this speed makes things like Venmo payment scams possible. Let’s dive into this world, see how these scams work, and how to avoid them.
The magic of P2P payment platforms
Paypal, Venmo, Zelle, and Apple Pay Cash are all P2P (peer-to-peer) payment platforms. They allow users to transfer funds between themselves using their bank accounts or debit cards through an online or mobile service. What makes them so popular is their ease-of-use and speed.
Venmo payment scams—the dark side of convenience
Venmo isn’t the only payment platform involved. Scammers may take a different approach with Zelle or PayPal than they do with Venmo, but all of these P2P platforms are now fertile ground for exploitation. In Venmo’s case, its popularity, especially among younger users, has made it a target for scams. Venmo’s social feed feature, which can publicize transactions, may also give scammers clues on whom to target.
Here are four different types of scams involving these payment services:
- Unauthorized access and account takeover: Scammers gain access to your account and make unauthorized transactions.
- Phishing scams: Users are sent fake requests for money or fraudulent notifications to capture their login credentials or other sensitive information.
- Overpayment and fake refunds: Scammers make a purchase from a seller and pay more than the agreed-upon amount. They then ask for a refund, tricking users into sending goods before the seller discovers the initial payment was bogus.
- Fake sales: Scammers sell non-existent goods or services and disappear after receiving the payment.
4 tips to avoid Venmo payment scams
The best defense against fraud on Venmo or another service is vigilance. There are several steps you can take to secure your payment transactions:
- Use strong, unique passwords and enable two-factor authentication: This provides an additional layer of security for your accounts.
- Verify requests for money: Even if you think the request is coming from a known contact, it’s wise to double-check before sending any money. Do this verification in a different way from the request. For instance, if you received an email asking for money, try calling or texting the contact. Do not simply reply to the request because it could go to the scammer if they hacked your friend’s account.
- Be cautious about sharing personal information: Avoid publicly sharing your P2P IDs and think twice before sharing them with unknown parties. You should share this information only when necessary and only after verifying that you’re dealing with a legitimate business or person.
- Monitor your transactions: Regularly review your Venmo (or other) account activity to spot any unauthorized transactions quickly. If you notice anything suspicious, report it immediately.
The role of payment platforms in fraud prevention
Venmo regularly updates its security features and anti-fraud measures. However, scammers are always looking for new ways to exploit systems. That’s why it’s essential to understand the tools available to you. You’ll find tips from Venmo on their website at this link.
In situations where you’ve become the victim of a scam, it’s critical to act swiftly. The first step is to contact Venmo’s support team through their official website or app to report the fraudulent activity. This allows them to take necessary actions to secure your account and investigate the incident. Next, consider reporting the scam to law enforcement or the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.
Also, monitor your financial accounts for unusual activity. Inform your bank or credit card issuer about the fraud to protect your funds.
Final thoughts
While payment platforms such as Venmo offer unprecedented convenience, they also come with unprecedented risks. The digital landscape is continually evolving, and so are the tactics of scammers. By staying informed and vigilant, you can protect yourself and your finances from the dangers of these scams.
Did you miss last month’s scam tip? You can find it at Unmasking Impostor Scams: The IRS, AI, and You. Need a little fun? Try my Friday Morning Post. Each week, you’ll get a virtual visit to one of America’s Amazing places and an online jigsaw puzzle! Last week’s stop Exploring Monument Rocks: A Kansas Prehistoric Marine Wonderland.
Our bank is a little overzealous with Zelle payments. They held up money several times even though I spoke with a bank rep and assured him I knew the payee, and the payment was legitimate. And time sensitive. I ended up mailing a check.
It can certainly be frustrating. We have a monthly transfer from one of our accounts that we do monthly. Every month the bank puts a hold on it.