Did you get paid by ‘accident’ on Venmo? It could be a scam, watchdog group warns
“Accidental” payments from a stranger on Venmo and other digital wallet apps are scammers’ latest ploy to trick people out of their money, the Better Business Bureau warns.
The consumer watchdog group says users should be wary of random payments from people you don’t know, especially if the person sends a message that reads something like, “Oops! Can you send that back?”
Experts say you shouldn’t return the cash right away, however.
“What you don’t realize, is you’ll send that money back, and that money was never there,” Troy Baker, director of the BBB’s Western Michigan Educational Foundation, told WZZM 13. “It’s usually done with a stolen credit card or some other payment that gets rescinded.”
To steal your cash, scammers connect stolen credit cards to digital wallet apps such as Venmo, Cash App and Apple Pay and use them to send “money” to unsuspecting users, according to the BBB. If/when the user sends the cash back, the fraudster will remove the stolen credit card from their account and add their personal card in its place.
The money you sent will be deducted from your Venmo or bank account, if it’s connected.
Because most digital wallet apps don’t guard against fraud, the chances of being reimbursed are slim to none.
“You’re not supposed to send this to people you don’t know,” Baker said, according to WZZM 13. “It’s not for purchases with people you don’t know, and there’s no protection if it goes wrong.”
Phishing and other fraud involving digital wallet apps are becoming more common, the BBB warns. Several incidents have been reported to the organization’s Scam Tracker, including one in which a victim said they received a text that appeared to be from Vemno warning about “suspicious activity” on their account.
There was “nothing wrong with my account,” the person wrote, according to Scam Tracker. “They sent a text with a link, but I did not click the link.”
Fraudsters may use other means to steal cash, such as setting up a virtual transaction and canceling it before the payment processes. Fake emails claiming overpayment for an item have also been reported, the BBB says.
To avoid getting scammed, experts advise only conducting money transfers with people you know. If you suspect someone has sent a payment on accident, wait a few days and ask them to cancel it.
“If the person refuses, it’s probably a scam,” according to the Better Business Bureau.
Lastly, money transfer apps should be linked to a credit card rather than a bank account.
This story was originally published March 11, 2021 at 4:11 PM with the headline "Did you get paid by ‘accident’ on Venmo? It could be a scam, watchdog group warns."