How to Protect Yourself from Mobile Payment App Scams

Mobile Payment App Scams and Risks

Imagine walking down the sidewalk and being confronted at gunpoint by a crook. Open the payment app on your phone and transfer out your hard-earned cash, or take a bullet in the head. That’s one phone cash ripoff scenario of many playing out in real-life America. Other cash app crimes are happening due to the vulnerability of an unlocked iPhone without the new Stolen Device Protection turned on in iOS. These are examples of how mobile payment apps can put your money and your life at risk.

Do you use mobile payment apps like Venmo, Zelle or Cash App to send and receive money? If so, you’re not alone. These peer-to-peer payment services now handle an estimated $1 trillion in payments. And with that much money involved, there are also now a lot of fraud and scams going on, according to Alvin Bragg, the Manhattan district attorney. He says these apps are exposing many people to scammers and thieves and are costing them a lot of their hard-earned cash.

In response, Bragg has written letters to the companies that own these apps, demanding they improve their security and protect their users from scams and thefts. His specific request is that they impose limits on transactions, require secondary verification of up to a day and better monitor unusual activity. He says he is requesting meetings with the companies to discuss these issues.

How Criminals Exploit Unlocked Mobile Devices

Bragg's letters describe how these financial apps enable criminals to access unlocked devices and exploit them for financial gain and identity theft. Offenders can gain access to unlocked devices and drain bank accounts, make purchases, open new accounts, and change security settings. The ease with which offenders can collect significant sums of money in minutes is incentivizing a large number of individuals to commit these crimes, which are creating serious financial and personal harm to residents.

Many cases of fraud and identity theft stem from phishing, spoofing, and device theft. Scammers pretend to be someone else, create fake profiles or accounts, or steal devices to access mobile payment apps without permission. These tactics allow criminals to cheat or steal from unsuspecting users.

To prevent falling victim to these scams, it's crucial to understand the tactics criminals use and take steps to protect yourself from mobile payment fraud.

Protecting Yourself from Mobile Payment Fraud

While mobile payment apps have security features in place, they are not enough to guarantee protection. It is essential to take additional measures to safeguard your money and personal information. Here are ten steps to protect yourself from mobile payment fraud:

1. Access payment apps only through official sources.

2. Set the highest security settings on your payment apps.

3. Create strong, unique passwords and change them regularly.

4. Enable two-factor authentication for added security.

5. Lock your device and log out of your apps after each use.

6. Verify the identity and legitimacy of senders and receivers.

7. Link your accounts to a credit card for better fraud protection.

8. Avoid keeping balances in money-transferring apps.

9. Beware of clicking on links from unknown sources.

10. Monitor your account activity and report suspicious transactions.

If you believe you have been scammed on Venmo, Zelle, or Cash App, report the transactions to the app, contact your bank or credit card issuer, change your password, file a complaint with the FTC, and consider subscribing to an identity theft protection service to monitor and recover from potential fraud.

By following these steps, you can protect yourself from mobile payment scams and enjoy the benefits of these apps safely and securely.