6 Ways to Spot A Mobile Payment App Scam
Scammers have noticed that more Americans are sending money through mobile apps like Zelle and Venmo. Here’s how to avoid getting scammed by a mobile payment app.
Millions of Americans use peer-to-peer payment apps like Zelle, Venmo, Cash App, and PayPal to buy things online, send money to family and friends, and split bills with roommates. A 2020 survey by NerdWallet found that 94% of millennials between the ages of 24 and 39 use mobile payment apps. This is more than the 87% of Gen Zers, 88% of Gen Xers, and 65% of baby boomers who also use mobile payment apps.
The Federal Communications Commission says that since the COVID-19 pandemic began, Americans who want safe contactless payment options are more likely to use mobile payment apps (FCC).
But the agency warns that scammers have taken advantage of the fact that these mobile payment apps often make it easy to get cash quickly and sometimes without being seen.
Here are SIX PROVEN ways to spot and avoid mobile payment app scams:
The most common scams involving mobile payment apps. Many peer-to-peer payment apps for phones make it easy to send money quickly. Capital One says that this speed gives con artists a chance to take advantage of people who aren’t paying attention.
On their websites, the American Bankers Association and Capital One talk about some of the most common mobile payment app scams, such as:
- “Suspicious activity” Scam: Scammers pretending to be your bank may call or text you about “suspicious activity” on your account and tell you to send money to yourself or to “the bank’s address” to reverse a transaction or make sure the account isn’t frozen. But you’re sending money to the imposter and not your bank.
- “Accidental” Payment Scam: A con artist “accidentally” sends money using a stolen credit card through a mobile payment app and then asks you to send the money back. If you send money back to the scammer, the mobile payment app could take money out of your account or hold you responsible.
- Fraud Alert Scam: A con artist may contact you claiming to be from your bank’s fraud department and ask you to confirm personal information, such as your username and password, credit card or debit card information, or your Social Security number. This is done to create a new account using your data, steal your identity, and get into your other personal accounts.
- Fake Emergency Scam: Scammers may also ask to borrow your phone for an “emergency,” Instead, they may make money transfers using your mobile payment apps and bank accounts.
- Fake Seller Scam: Scammers who pretend to be real businesses may ask you to pay for a product or service with your mobile phone. But once they have your money, they disappear, and you never get what you paid for.
- Work-from-Home Scam: You take a job where you can work from home. The company sends you a check to cash and then asks you to use a mobile payment app to send all or part of the money to someone else. The American Bankers Association says not to deposit the check because the company is a scam, and the check will bounce, leaving you responsible for the amount of the fake deposit.
Ways to avoid a mobile payment app scam:
You can protect yourself from becoming a victim of a mobile payment app scam in several ways. No matter what mobile payment app you use, Capital One, Zelle, Venmo, and Cash App all have a few tips that may help:
- Pay It Safe: Once you send a transaction to another user, many mobile payment apps don’t let you cancel it. Because of this, don’t send or ask for money from people you don’t know and trust.
- Take Your Time: Try not to be in a hurry when you send money through a mobile payment app. Capital One says it could be a warning sign if someone tells you to act quickly.
- Treat Payments Like Cash: Money moves quickly when you use apps to pay with your phone. Before you hit “send,” it’s always a good idea to ensure you have the correct information and that your money is going to the right place.
- Use Your Security Settings: Two-factor authentication is one of the ways that mobile payment apps help to keep your account safe. Help them out.
- Let Your Bank Help: If your bank has fraud alerts, you should use them. It would be best if you also kept an eye on your account. Capital One says that you should call your bank immediately if you think something is wrong.
- Keep Your Personal Information Private: Don’t tell people you don’t know your address, phone number, or other personal information.
Report a mobile payment app scam:
Here’s how to get in touch with the mobile payment app company to file a report if you think you sent money to a scammer or if you find an unauthorized payment in your account:
1. Zelle
If you are signed up for Zelle with a bank supporting it, contact their customer service team immediately to report a scam. If you signed up for Zelle through the app, you can call 1–844–428–8542 or fill out a form on their website.
2. Cash App
Cash App says that the fastest way to get help is to chat through their app. To do this, open the app, go to your profile, and select Support from the menu. You can also call 1–800–969–1940 or go to the Cash App help to get help.
3. Venmo
Venmo also says that the fastest way to get help is to chat on their app. To do this, open the app, go to your profile, and select “Get Help” from the menu. You can also use Venmo’s contact form to send them an email or call them at 1–855–812–4430.
4. PayPal
Use PayPal’s Resolution Center or call 1–888–221–1161 to file a complaint.
You can also tell the FTC about scams involving mobile payments at ReportFraud.ftc.gov.
