You likely use peer-to-peer apps. Here’s how to ensure you’re using them safely

Chances are you’ve used a peer-to-peer app to send a quick cash payment to a friend or family member. These convenient platforms are easy to use and popular.

More than 60% of adults say they use P2P for payments to individuals, and more than 80% of people 18 to 29 say they do, according to a 2022 survey by Consumer Reports.

You may already be using Zelle with your CommunityAmerica account, or be familiar with other payment apps, such as Venmo, Cash App and Apple Cash. The cash payment platforms may differ slightly, but they all work basically the same in the way they enable their users to transfer money from person to person.

Still, questions come up. Are these peer-to-peer payment apps safe to use? Generally, the answer is yes: Sending your money via the widely used platforms is safe.

Yet, it’s still a good idea to be cautious while using the apps, mainly because using technology on any platform or device has risks. No security safeguard is infallible.

Tips for using apps safely

It’s important to be mindful before you send and receive money. This will lower the risk of being a victim of a scam or fraudulent behavior.

Only send and receive payments from people you know.

It’s best to keep your P2P activity between you and the people you trust, like friends and family. Risks go up when you start using these apps with strangers. Because many of the transactions are instantaneous and irreversible, you are risking a loss when you’re using a P2P with someone you don’t know.

Be hesitant about buying merchandise you’re not holding in your hands already.

Scammers sometimes use payment apps to trick people into sending money by claiming to be selling something like concert tickets — or even puppies.

The problem occurs when you send the money but don’t actually get the tickets (or puppy) promised in the exchange.

Add extra security

Set up your P2P app to require an extra security step, such as a PIN, passcode or facial recognition to complete transactions. That way if your phone gets out of your hands, no one else can initiate a payment.

If your phone is actually lost or stolen, be sure to notify the bank or credit union linked to your payment account.

Opt-in for notifications for every transaction.

The P2P app you use may already do this automatically. If not, look through your settings and set it up so you’ll get an email or text whenever there’s a transaction on your account.

Watch for red flags. For example, if you’re getting a request for payment from an individual that seems unusual — for instance, from someone you know but something they wouldn’t send — don’t respond to the request. Instead, contact that person or business directly.

Another flag to watch for would be any requests that ask you to send funds to upgrade or pay for the app. That wouldn’t happen. All P2Ps are free to download and use.

For instance, a CommunityAmerica representative would never call and ask you to send money via a payment app. If you get a call like this, ignore the request and contact a representative from the organization immediately.

If there’s a problem

It’s difficult to stop a payment from leaving your account in most P2P apps, and liability for the funds typically lies with the user. Once it’s sent, the money is gone. So, remember to heed caution before you send any payments to someone you don’t know.

“Let’s Talk Money” is powered by CommunityAmerica Credit Union and this week’s feature comes from Manager of Fraud Investigations Roxanne Doss. Contact CommunityAmerica through live chat or a secure email in Online Banking or the Mobile App or call 913-905-7000.