How to Spot Fake Payment Requests on Venmo, Cash App, and Zelle

Thanks to financial apps like Venmo, Cash App, and Zelle, it has never been easier to send or receive money. But while these apps make our financial lives easier; they also open us up to risk. They generally have the same level of fraud protection as more traditional payment methods, such as banks and credit cards. This means scammers are actively looking for ways to exploit these platforms, principally through fake payment scams.

Venmo and Cash App scammers use schemes to trick you into sending money or your personal information, such as your bank account details or Social Security Number (SSN), to someone you might believe is a friend or trusted source. They then disappear with your money or run fraudulent activity on your account before you or your bank realizes it.

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According to the New York Times, peer-to-peer payment apps have fraud rates three to four times higher than credit cards.

Protect yourself and your hard-earned dollars by knowing how to spot fake payment scams involving Venmo, CashApp, or Zelle.

How to Spot Fake Payment Scams

There are many fake payment scams, but the underlying principles that help you identify the scam are the same whether you are using Venmo, Cash App, or Zelle. Requests that look like these fake payment scams should be red flags that cause you to double-check before hitting send.

Overpayment or Mistaken Payment

You might receive money from someone saying you sent it to them by mistake or that you sent too much money for an agreed-upon payment and they want you to send the excess amount back. Fraudsters generally make the payment to you with a stolen credit card, and then change their payment details before receiving the refund, so that you’re sending the money to them and not the account of the stolen card.

What can you do?

Ignore unexpected transfers, especially if the sender asks for a refund.
Don’t deposit unexpected transfers directly into your bank account. That way, you are not implicated if the actual victim reports the fraud.

Impersonation Scams

Impersonation scams are among the most common and involve someone pretending to be someone you know, such as a family member, friend, or co-worker. They will ask you to send them money for something urgent, hoping you will send it without considering the legitimacy of the situation. Similarly, they might pretend to be someone from the app provider, asking for your bank account details to resolve an issue.

What can you do?

Consider if the character and language of the request are unusual, especially if there is a level of urgency.
Contact the person independently via another communication method to verify the request.
Update your privacy settings to keep your transactions private, as this is often where fraudsters start their research.

Free Money Scams

Scammers will send a message claiming you have won free money, then ask you to send your bank details to receive the payment. Alternatively, you may receive a survey offering you a gift card if you complete it. You’ll then be asked to give your account details to receive the gift, which will then be stolen.

What can you do?

Don’t respond to messages claiming you have won a competition you never entered.
Don’t respond to emails or messages offering rewards via cash transfer apps. Businesses don’t use them because it doesn’t comply with the user agreement.
If you are unsure, check directly with the business’s customer service before continuing.

Fake Sales

Scammers will also list fake items for sale on platforms like Craigslist or fake tickets to popular concerts on online marketplaces. You make the payment but never receive what you paid for.

What can you do?

If a deal is too good to be true, question its validity.
Request alternative, more secure payment methods; refusal from the seller to do so should be a red flag.

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