Top 11 Venmo Fraud Schemes to Watch Out For, Together with Prevention Strategies
Hangin' with Venmo: A guide to avoiding scams
Sending and receiving money through peer-to-peer apps like Venmo provides convenience, but it also attracts a pack of shady characters looking to game the system. Here's a lowdown on some typical scams to steer clear of.
Oopsie daisy, my bad!
The accidental payment con goes like this: someone you don't know Venmos you a random sum, saying it was a mistake. They then ask for the money back, often through a follow-up payment. Sounds harmless? Think again! These sorts of transactions often involve scammers using stolen credit cards to slip through the wires and then connecting their own accounts to receive funds returned. So, when the initial transaction gets reversed once the card's been reported, you're on the losing end.
To dodge this scam, don't be suckered into returning the cash to strangers. Reach out to Venmo support to get the snafu sorted without putting your account on the line. Definitely block the sender after this point.
The masked impostor
Crafty scammers may try to dupe you by posing as someone from your public Venmo feed. If your transactions aren't private, rotate your settings pronto! These cyber-characters often send requests that seem urgent, or they might appear around the same time as actual payments you've made.
Should you receive an unexpected Venmo payment or request, tap the profile for a closer look before responding. Also, zap a quick message to that friend outside of Venmo to ensure everything's on the up-and-up before hitting 'Send'.
The tech support scam
Impersonating technical assistance isn't limited to your computer. If you find yourself dialing a support number (for any reason, not just Venmo), never part with your bucks for such services through Venmo. Fraudsters are known to phony phone numbers and impersonate technicians.
Venmo advises being on guard against lines that lure you with statements such as:
"Hey there! It’s [Insert Company Name] Support! I'm Andy, ready to help! Before we dive in, I need to collect payment for today's assistance. Mind telling me if you have a Venmo account?"
For support, find official contact information from the company's website by typing the URL directly. And remember, real assistance for these services is usually a bunch of freebies.
The phony call
Just like with tech support, scammers posing as Venmo’s support team may reach out to you over the phone or through text. They might say there's been suspicious activity on your account and urge you to login via a link they provide or demand your multi-factor authentication code to access your account. Guess what? That's phishing! Venmo will never ask for verification codes or request remote login access.
Instead, connect with Venmo support directly to confirm any questionable requests, and report any shady or fishy texts and emails.
The giveaway gimmick
If you get a message telling you’ve won some cash from Venmo, you're being scammed. This ploy involves a bogus link to log in to your Venmo account, effectively handing your information over to cyber-criminals. Never input your Venmo login anywhere other than at Venmo.com or the Venmo app. Stay away from links in unsolicited messages.
The fake charity gig
Giving to causes you care about feels like a good deed, but scammers'll take advantage by circulating bogus Venmo accounts under the guise of other individuals or organizations. Before contributing, double-check that the account hits the mark by hooking your link straight from the organization's website or social accounts.
The romance trap
Romance scams are a long, manipulative affair: crooks create fake profiles, court you emotionally, gain your trust, and eventually ask for funds via Venmo. Be cautious of online connections trying to flip the relationship all emotional and ask for money. Keep in mind – never lend greenbacks to someone you've never met in person.
The job hook
If you get an out-of-the-blue text from a recruiter touting a job offer, scroll past—it's a scam. Sometimes, these bogus offers come with pleas to pay upfront for onboarding or to move money around using your Venmo account. Digitally toss these messages – ignore them completely and don't click any links.
A similar deception involves a message from a prospective landlord asking for a deposit before you've signed a lease.
The swindling purchase con
If you're buying or selling goods and services, watch out for shady moves scammers make to filch your funds. They might ask you to pay upfront and never send the item they've promised or send you phony shipping info. They may also ask you not to mark the payment as a purchase, rendering it ineligible for Venmo's purchase protection.
To stay clear of this scam, stick to Venmo's business accounts while shopping. Look for the message "Eligible items covered by Purchase Protection" under the Pay button. When selling, don't ship until you've received verifiable payments. Scammers may "accidentally" overpay using a stolen card or bank account and ask you to send back the extra cash.
The check swindle
Swindlers might send you a paper check and request a Venmo payment in return. The check may even clear when you deposit it, but it'll bounce later, and you're out the dough. Don't swap one form of payment for Venmo funds.
The offers that seem too good to be true
While the aforementioned cons are common, new schemes might surface. For example, be cautious about using Venmo to pay for hard-to-find items listed on other platforms, as these could be scams that exchange payments for zilch. Similarly, steer clear of offering money for gift card deals or investments through Venmo.
Secure yourself and Venmo
To protect yourself and your account, follow these golden rules:
- Watch Your Transactions: Keep a close eye on your Venmo account for any fishy activities.
- Privacy Settings: Ensure that your Venmo transactions are private.
- Discourage Clicking Links: Don't click on links in nonsensical emails or messages.
- Input Support Contact Info: Connect with Venmo support directly whenever you feel uncertain.
- Block Suspicious Users: Toss out any friend whose Venmo activities trigger red flags[1][2][3][4].
By staying savvy and vigilant, you can steer clear of most Venmo scams.
[1] Venmo.com - Privacy and Security Tips
[2] ConsumerAffairs.com - Venmo scams: How to protect yourself
[3] NYTimes.com - Avoid These Common Venmo Scams
[4] CBS New York - Common Venmo Scams
- Carefully handling financial transactions on peer-to-peer apps like Venmo requires vigilance due to the prevalence of common scams, such as the accidental payment con, the masked impostor, the tech support scam, the phony call, the giveaway gimmick, the fake charity gig, the romance trap, the job hook, the swindling purchase con, the check swindle, and offers that seem too good to be true.
- To safeguard your personal-finance and cybersecurity while using technology like Venmo, prioritize watching your transactions, maintaining privacy settings, avoiding clicking on suspicious links, seeking direct contact with Venmo support, blocking dubious users, and staying informed about best practices in finance and technology.
- It’s of paramount importance to steer clear of scams that target peer-to-peer finance applications like Venmo, and to educate yourself on the various types of common scams – such as the ones mentioned previously – in order to protect your money and personal information.
