Payment apps (P2P apps) and scams | Cedar Springs Post Newspaper
Posted August 12, 2022.
Over the past thirty days, the Ministry of the Attorney General has received numerous complaints of scams involving payment apps such as: Zelle, Venmo, Cash App and PayPal.
Many consumers use these payment apps to easily and conveniently pay others. Unfortunately, scammers have adapted their tactics to take advantage of the quick, and often anonymous, access to money they provide.
What to pay attention to:
- Scammers posing as your bank may call you to alert you to “suspicious activity” on your account
- Fraudsters may contact you claiming to be a fraud service or merchant and ask you to confirm information such as your bank account username and password.
- Fraudsters may try to convince you that you were paid more than you were owed.
P2P apps are not federally insured, regulated, or supervised, even if they partner with an FDIC-insured bank.
Review the app’s fraud protection policies and understand if and how you can recover funds if something goes wrong.
When you send money using a P2P app, payments and transfers are instant and mostly irreversible. Link your money transfer app to a credit card rather than a debit card or your bank account.
If you think you’ve fallen victim to a scam involving peer-to-peer payment apps, you can file a complaint with the Federal Trade Commission. For questions regarding P2P services, contact the Consumer Financial Protection Bureau at https://tinyurl.com/5e9nd4pa.
For more information, go to: https://www.michigan.gov/ag/consumer-protection/consumer-alerts/consumer-alerts/scams/payment-apps-and-scams.