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Money transfer apps, also known as P2P transfer apps, are brought up to help us send money to our friends, family members, and even business partners quickly, safely and at anytime.
And with some of the best money transfer apps in the world like Cash App, Paypal, Zelle, Venmo, and many others, many people have undoubtedly turned to be using money transfer apps for their day to day transactions.
And with these millions people that have engaged into these platforms, scammers have also without any hesitations gone online to do what they are best at doing(stealing).
But while these scammers have come online with their multiple techniques to steal money from account owners, P2P transfer apps have also come in with many other ways to help their users to be safe from these bandits.
Well, with Venmo also being one of the best money transfer apps, they have also come up with ways to help you to stay away from scammers easily. And wo, in this article, we will be showing you some common scams on Venmo and also show you how you can deal away with them.
Venmo Scams you Should Know and Also How to Avoid these Scams
Well, checkout this list of scams you'll see frequently if you are on Venmo with their solutions.
1. Transfer Error
On the surface, the "mistaken" money transfer seems unimportant. After sending you money via Venmo, a fraudster claims it was a "error" and requests a refund in a message.
In reality, fraudsters are sending you money using a credit card that has been stolen. They then update their Venmo account with their own banking information before you repay them. You reimburse them as a result, not the stolen credit card.
Since Venmo doesn't have any built-in fraud precautions, it takes the money from your account when the actual credit card owner reverses the charge.
What to do?
When this happens to you, don't just hurry quickly to be sending the money back to the scammer. Instead, you can contact the Venmo team to do the refunding for you if you feel so much sympathy.
2. Fake Payment
Always double check who you are selling to when you sell something on Venmo. Fraudsters may request that you give the good or service without actually paying you with money.
They may send you screenshots of totally fake emails, use your bank account or credit card information to make payments, or claim to have sent you a payment that won't go through to your Venmo account until you ship the item and upload the shipping documents in order to convince you that the money is in your account.
What to do?
Use the app only when exchanging money with someone you trust to avoid getting a fake Venmo payment.
3. Offering for More
One common Venmo scam involves scammers asking you to transfer them a modest sum of money in exchange for a greater sum later on. For instance, they might guarantee that if you wire them $200, you would receive $2,000 in return within a week.
Adam Gordon, a digital security specialist and instructor at ITProTV, says that regardless of whether the request comes from a stranger or someone you know, it's probable that you won't ever get any money back.
And that is completely true. Don't think that someone from heaven will just appear and offer you some cash.
What to do?
Never fall for this because it is too good to be true. Do you think they will just multiply the money and send it back to you? No!!! Never send money to someone you don't know or trust.
4. Venmo Text Message
You could receive a text message or email from someone pretending to be Venmo. And usually, they have a link in their message always with a message of changing your password, or that the system crashed and you have to re-fill your login info... and many others.
And immediately you click that link, you are redirected to a fake Venmo site where any info you put in, the con artist will see it. Later on the scammer will just come into your account, wipe out everything, and then disappear into space and you will never notice there was something.
What to do?
Never click any links from Venmo in your emails or text messages. Prevention is better than cure. Even if it is Venmo that sends you the message, just ignore it, go to your web browser, and open the real website from there, or directly from the app.
5. Call pretending to be Venmo
When attempting to log into your account, the scammer can run into Venmo's multi-factor authentication process. A code given to the phone number listed on the Venmo account must be entered throughout this process. Then they will call you pretending to be from Venmo and want the code from you.
Other frequent versions include claiming to be from Venmo and requesting that you sign into the account they made for you or request that you send money to another Venmo account.
What to do?
- NEVER give anyone the verification code that was received to your phone. Under no circumstances will a Venmo agent ask you for this code.
- Never will Venmo request remote access to your device.
- You will never be prompted to install a third-party app by Venmo.
- Never assume that Venmo will open an account for you.
- You will never be instructed by Venmo to transfer funds from your account to another user's account on a different payment system.
- Never will Venmo request payment to "verify" your account.
6. Purchase via Venmo
While you're trying to use Venmo to make a transaction, a scammer can try to persuade you to pay them first (either the full or partial amount) and then fail to deliver what they had promised.
Uncommon goods including video game consoles, shoes, concert tickets, mobile devices, and more are the types of things these scammers advertise online.
A scammer may give you fake tracking details or screenshots to deceive you into thinking they have sent the products when they haven't.
They have the right to request that you do not mark the payment as a purchase. And if they do that, Venmo will charge you and your cash will be all gone and you also won't be able to get it back?
What to do?
If you want to buy something from someone you don't know, only use a business account that Venmo has approved, or only do it if you add the money to your personal Venmo profile as a purchase.
On authorized business accounts, the phrase "Eligible items covered by Purchase Protection" will appear beneath the "Pay" button.
7. Tech Support scamming
You try to call a well-known company's tech support number, but instead get a scammer's phone line.
They might advise you to send money to another Venmo user in order to pay for their technical services.
What to do?
Instead of using a search engine to look up a company's phone number, go directly to the company's website and click on the Contact page.
Remember that it is very uncommon for a business to demand cash in exchange for technical assistance. Because businesses want you to use their offerings, tech help is frequently provided without charge.
8. Charity or Family Scam
A number may text you as a brother or as a family member, or even as a friend and request that you send them some cash because they are deeply in need. Immediately you send the money, they block you and disappear. Later on you meet that person in real and ask for your money and they say they have never asked you for money. That's a scam.
What to do?
Even if you are contacted for deep need, it should not blind your eyes to still checkout the account if the person at the other end is legit or if the person is someone you know well. Don't send money to someone you don't know or trust.
9. Marketplace Scams
When buying or selling items on platforms like Craigslist or Facebook Marketplace, scammers may request payment through Venmo. After receiving the funds, they often fail to deliver the promised item.
What to Do?
The best thing to always do in this situation is to get the product first, before proceeding for any payments. "You can't pay for something you have not seen with your eyes yet", this policy should help you when shopping on Marketplaces like Facebook marketplace.
10. Other types of Venmo scams
- A fraudster may ask you to send them money via Venmo in exchange for a check they've sent you. When you cash a check at your bank, it usually clears, but if it bounces later, you'll have to pay your bank back.
- Any new employment offer that calls for you to transfer someone else's funds using your bank account or Venmo in order to onboard them.
- A new landlord asks you to pay a rent deposit on a property even if they have not yet given you the necessary documents, keys, etc.
- Someone pressing you to donate money by creating emergency circumstances or occurrences that make you want to act quickly.
Read more at: https://help.venmo.com/hc/en-us/articles/360048404533-Common-Scams-on-Venmo
How To Protect Yourself From Venmo Scams
Exchange payments exclusively with people you trust and are familiar with personally if you want to avoid Venmo frauds. However, if you must use Venmo in other circumstances, you can still do it securely by heeding the advice below:
- Instead of your bank account, link your credit card to your Venmo account. In the event that something goes wrong, canceling a credit card (and initiating a chargeback) is more simpler than attempting to have your bank reimburse you for the losses.
- Make sure that all of your Venmo transactions are private by updating your privacy settings. You don't need to tell everyone of your pals that you sent your roommate $65 this month to cover the power bill.
- If someone you know contacts you unexpectedly with a request or payment, get in touch with them to be sure they are the ones who sent it.
- Users who have sent you unauthorized payments or requests should be blocked.
- Never send or deliver something to the recipient until you have been paid and can verify the transaction is valid.
- Offers that look too good to be true should be questioned because they are probably frauds.
- Give no one, not even those claiming to be from Venmo, your personal information.
- Don't open any attachments or links in shady emails or texts.
- Keep your phone to yourself.
- Multi-factor authentication should be set up (2FA or MFA). This forces Venmo to send you a code in order to confirm a login on an unknown device.
- To protect your identity, online accounts, and money from fraudsters, use Aura's all-in-one digital security solution. You have $1,000,000 in insurance coverage in case the worst happens and you suffer qualifying losses as a result of identity theft.
Final thoughts on some Scams you will see often on Venmo
Are you looking forward to joining Venmo and are you really willing to avoid yourself from entering unneccessary shock? Well, knowing some venmo scams will be very important.
A word says only a thieve will know another thieve. And that is because they know their tricks each of them.
Well, if you know these scams, then you will know how to bypass them if you are faced with it. If you know a thieve will visit you in the night, then you will be prepared for him.
And that is why we have brought in this article some scams you should know so that you can keep your account and money safe during transactions.
Some Frequently Asked questions(FAQs)
Can I get my money back if I am scammed
You might not get your money back if you fall victim to a Venmo email scam, phone scam, or credit card scam. If you have been tricked through the company's app, a refund is not a guarantee.
However, there are a few actions you might be able to take to make an effort to get your money back. Customers can submit a claim and ask for a refund for certain purchases through the Venmo Purchase program if they didn't get what they ordered or it wasn't what they expected. You must have paid payments to verified businesses and merchants using a Venmo Debit Card in order to be eligible.
What should I do if Scammed?
If you believe you are a victim of a Venmo scam, report the event right away to Venmo Security Support and break off communication with the con artist. You should also take steps to update the password on your Venmo account and secure all of your other online accounts by selecting strong passphrases for each. Instead of using passwords that are simple to guess, use passphrases that are at least 12 characters long. This is significantly simpler if you store your passwords in a password manager. Finally, spend money on a safe phone to avoid future security issues.