Payment apps (like Venmo, CashApp, or PayPal) can be a convenient way to pay friends. But these payments may not come with the protections of credit cards or debit cards. Take these steps to protect yourself.
Consider protecting your account with a PIN or two-factor authentication to send a payment. Two-factor authentication requires you to enter a password plus something else — like a code sent to your phone —to prove it’s really you.
Understand the costs. Will a payment app charge you to send money or get money — and how much will they charge?
Know how you’ve set up your account. What permissions have you granted to the payment service? If it’s linked to social media, it could broadcast your payment history to your social network. Setting up your payment account with a credit card could offer extra protections.
Know who you’re sending money to. Before submitting a payment, double-check the recipient’s information to be sure you’re paying the right person. If you get an unexpected request for money from someone you do recognize, speak with them to make sure the request really is from them — and not a hacker who got access to their account.
- Don’t send a payment to claim a prize or collect sweepstakes winnings.
- Don’t give your account credentials to anyone that contacts you.
- Spot an accidental payment scam. You might get a random deposit — but then get a message from the sender saying they sent the money by mistake. They’ll then ask for their money back. It’s safer to return the money by refund. Don’t create a new payment to return the money. But it’s safest to not accept payments from strangers at all.
Report a fraudulent transfer to the company behind the payment app and ask them to reverse payment. If the app doesn’t return your money and stop scammers from accessing your funds, report the app and company to the FTC at ReportFraud.ftc.gov. And take your business to another app, bank, or credit union.
