More people are using mobile payment apps such as Zelle, Venmo, and Cash App for transactions and instant cash solutions. With holiday shopping at its peak, these apps offer even greater appeal to consumers. They provide a fast and convenient way to purchase goods, and easily allow you to send and receive money. Since these apps are increasingly popular, related fraud is on the rise. Be vigilant when using these apps.
- Fast payment can lead to fast fraud. Instant transactions on apps like Venmo and Cash App compared to 2 or 3-day standard bank transfers, means there’s less time to detect a fraudulent charge.
- Use apps with a support line. If there’s an issue or fraud alert, it should be easy to contact the company to investigate and resolve. Read about the app’s security protocol, so you’re prepared in case fraud does occur.
- Know a lie when you hear one. Scammers make up stories to get you to quickly send money in a way that’s hard to trace, and makes it difficult for you to get your money back. Be wary of unexpected money requests, especially sent via email or text message.
- Turn on additional security features on the app. Using multi-factor authentication, fingerprint recognition, or a PIN will make it harder for a scammer to hack into your account.
If you plan to use a mobile payment app, you can add your LAPFCU credit and debit cards to Apple Pay, Google Pay, and Samsung Pay. These options use an authentication process through your smartphone, and the merchant never has access to your card details. Plus, if your phone is lost or stolen, you can remotely disable the payment app and wipe out financial data. In any case, use apps with caution. If you have any questions or feel you have been scammed, call us immediately at (877) 695-2732.
Resources: consumer.ftc.gov, cutoday.info, creditcards.usnews.com