Preventing P2P Fraud Pitfalls
The National Credit Union Administration (NCUA) has issued the following useful tips that will help you keep your money safe when using Person 2 Person (P2P) apps such as Cash App, Venmo, Zelle, social media money transfers, etc.
1. QUESTION
Ask yourself if using a P2P payment app makes sense for your transaction. Use P2P payment apps only with people you know and trust, if possible. You should never have to transfer money to receive money from an app. If you are asked to do that, it's a scam.
2. VERIFY
Always double-check the recipient's information to make sure you're sending money to the right person, even if it is someone you know. A good practice is to have the intended recipient send you a request before you send the money.
3. REVIEW
Familiarize yourself with the fraud protection policies of the P2P payment app that you are using and understand whether and how you can recover funds if a problem arises.
4. RECONSIDER
If your P2P app is linked to a checking account as a source of funds, consider linking instead to a credit card. A credit card provides added protection if you don't receive the goods or services you purchased.
5. PROTECT
Protect your payment app login with the strongest authentication available such as:
- Face ID,
- Touch ID,
- two-factor authentication,
- a strong password, and
- a PIN.
Turn off automatic login settings and set up notifications for all payment transactions.
6. CONTACT
Never provide sensitive account information to someone on the phone or via links in an email. Legitimate customer service representatives will not ask for this information. If someone contacts you requesting this information, contact customer service directly to confirm. Scammers can spoof emails and phone numbers.
