Amid this pandemic, more people than ever before are using peer-to-peer (P2P) payment apps. P2P payments are transactions that can be used for anything from splitting a $25 lunch bill between friends to paying rent. These payments allow the transfer of
funds between two parties using their individual banking accounts or payment cards through an online or mobile app.
It’s no surprise that as consumer spending patterns change, so do fraud trends. According to the Better Business Bureau Scam TrackerSM (BBB), the latest of these trends is the use of P2P payment apps. Cash App, Zelle, and Venmo
are a few among the growing number of mobile payment services used to transfer money using a mobile phone app.
Most P2P payment fraud occurs in two forms. Either a seller requesting payment through the app or phony customer support requesting information, thus allowing fraudsters to engage in social engineering to collect user information. Reports on the BBB Scam
Tracker report that one victim succumbed to scams in which fraudsters invited them to purchase bogus software via an app. In another scam, a user tried to buy concert tickets for $350 and was then instantly blocked.
While P2P payment apps are an extremely useful tool that has allowed cardholders to help and connect with others during this trying time, here are some safety tips:
If you feel you have been scammed, report the scam to the mobile payment app and ask for the transaction to be reversed right away. Then, report it to the Federal Trade Commission. When you report a scam, the FTC can use the information to build
cases against scammers.
If you suspect you have been scammed or sent money to the wrong account, you will need to work with the mobile payment app to refund your money.
(Reprinted from Shazam.net/news/shazam-blog)
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