You bought something online and the seller wants payment through CashApp. Is that okay?
You have a new job and the employer sends a check – for more than your salary. Is it okay to deposit?
Your water bill is overdue and the “utility” demands payment by a pre-paid card. Is that a problem? In all three cases, it’s a scam!
Knowing the ins and outs of payment types is the best way to spot a scam. Peer-to-peer (P2P) digital wallet payment apps, such as Zelle, CashApp and Venmo, are becoming increasingly popular. How safe are these methods and when should they be used?
- Know how P2P apps work. P2P payment apps allow users to send money using a mobile app. You set up an account and link bank, credit or debit card details to provide funds to other users. You choose the recipient, select an amount, designate the reason, if desired, and submit.
- Know your rights. Unlike traditional banking, most P2P apps won’t cover your funds in case of fraud. If you sent money to a scammer and later realize your error, it’s unlikely you’ll get reimbursed.
- Use P2P payment apps wisely. Protect yourself from scammers and be careful about to whom you send money. Get to know scam tactics so you’ll notice when something is fishy. Avoid businesses only allowing P2P and only transfer funds to those you know and trust. Link a credit card, not a debit card, for added protection.
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