FRAUD ALERT: Peer-to-Peer (P2P) mobile payment apps
Do you use peer-to-peer (P2P) mobile payment apps such as CashApp, Venmo, and Zelle? P2P apps are designed to simplify financial transactions between people who know and trust each other. Unlike traditional debit and credit cards, payment app services often lack the same fraud protections. We have important reminders for you to keep your accounts safe and avoid being scammed:
Review the app's fraud protection policies and understand whether and how you can recover funds if a problem arises.
Be wary of any business that only accepts P2P payment apps or pre-paid debit card payments. Consider this a red flag.
Always verify the recipient's information before making payment.
Never send or accept payments from someone you don't know.
Never provide sensitive personal information over the phone.
Legitimate customer support operations will not ask for your bank account information.
Protect yourself from financial fraud and scams
Criminals and con artists use many scams to target unsuspecting people who have access to money. Consumer scams happen on the phone, through the mail, text message, e-mail, or over the Internet. They can occur in person, at home, or at a business.
Here are some tips to protect yourself and your loved ones from scams:
Don’t share numbers or passwords for accounts, credit cards, or Social Security.
Never pay up front for a promised prize. It’s a scam if you are told that you must pay fees or taxes to get a prize or other financial windfall.
After hearing a sales pitch, take time to compare prices. Ask for information in writing and read it carefully.
Never pay with gift cards or prepaid cards. Legitimate businesses will not ask for this.
Too good to be true? If it sounds too good to be true, it probably is.
Watch out for deals that are only “good today” and that pressure you to act quickly. Walk away from high-pressure sales tactics that don’t allow you time to read a contract or get legal advice before signing.
Put your number on the National Do Not Call Registry. Go to donotcall.gov or call (888) 382-1222.
Derived in part from consumerfinance.gov