Buyers can get caught up in the excitement of scoring tickets for their favorite events, send the money via a P2P app, but the seller leaves them empty-handed. Beware of anyone selling concert or sporting event tickets online. To avoid a malware attack, consider installing comprehensive security software on your family’s computers and devices. The scammer can then glean personal information from the person’s devices. They are prompted to click a link to go directly to the app, but instead, the malicious link downloads malware onto the person’s phone or computer. Another scam is sending people an email telling them that someone has deposited money in their P2P account. This scam has been known to happen in online marketplaces and other trading sites and apps. The friendly seller casually suggests the buyer “just Venmo or Cash App me.” The buyer sends the money, but the item is never received, and the seller vanishes. This scam targets an unassuming buyer who sends money through a P2P app to purchase an item from someone they met online. Here are just a few of the schemes that have been connected to P2P apps.įraudulent sellers. If your family uses P2P apps regularly, confirm each user understands the potential risks. While any app’s architecture may be deemed safe, no app user is immune from scams, which is where app safety can make every difference. CR also noted they “found nothing to suggest that using these products would threaten the security of your financial and personal data.” The consumer advocacy group ranked app safety strength in this order: Apple Pay, Venmo, Cash App, Facebook Messenger, and Zelle. CR found all the apps had acceptable encryption but some were dinged for not clearly explaining how they protected user data. In 2018 Consumer Reports (CR) compared the potential financial and privacy risks of five mobile P2P services with a focus on payment authentication and data privacy. After getting a P2P payment, scammers then delete their accounts and disappear - instantly. Because P2P money is transferred instantly (and irreversibly), scammers exploit this and are figuring out how to take people’s money. Online scam trends often follow consumer purchasing trends and, right now, the hot transaction spot is P2P platforms. While sending your hard-earned money back and forth through cyberspace on an app doesn’t sound safe, in general, it is. Because of the P2P platform’s rapid growth, more and more investors are entering the market each day to introduce new cash apps, which is causing many analysts to speculate on need for paper check transactions in the future. Some of the more popular P2P apps include Venmo, Cash App, Zelle, Apple Pay, Google Wallet,, Facebook Messenger, and Snapcash, among others. If the app offers a credit card (like Venmo does), the recipient can use the Venmo card like a credit card at retailers most anywhere. ![]() That person can leave the money in their app account, move it into his or her bank account, or use a debit card issued by the P2P app to use the funds immediately. Once your banking information is set up, you can locate another person’s account on the app (or invite someone to the app) and transfer funds instantly into their P2P account (without the hassle of getting a bank account number, email, or phone number). P2P technology allows you to create a profile on a transfer app and link your bank account or credit card to it. The research company, eMarketer, estimates that 96.0 million people used Peer-to-Peer (P2P) payment services this year (that’s 40.4% of all mobile phone users), up from an estimated 82.5 million last year. But as convenient as these apps may be, are they safe for your family to use? How do they work? To this mom, cash apps may be the best thing to happen to parenting since location tracking became possible. She uses a Venmo credit card to make her purchase. With one click, I transfer money from my Venmo account to hers. A Taco Bell study break with the roommates? No problem. I can’t recall the last time I gave my teenage daughter cash for anything.
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