Manhattan DA Urges Mobile Payment Companies to Crack Down on Fraud

Growing Problem with Mobile Payment Services

Manhattan District Attorney Alvin Bragg has raised concerns about the increasing issue related to mobile payment services such as Venmo, Zelle, and Cash App. He is calling for collaboration with these companies to protect people's money.

According to Bragg, there has been a spike in crime involving mobile payment services. Users have reported large sums of money being taken from their accounts without their permission. Some have even fallen victim to alleged street hold-ups.

Bragg highlighted the ease with which someone can access another person's life savings with just a few taps on their phone. He sent letters to Venmo, Zelle, and Cash App last week, expressing his concern and sharing examples of users being targeted.

Theft and Robbery Cases

The district attorney cited several instances of theft and robbery related to mobile payment services. In Los Angeles, individuals were robbed at knifepoint, losing thousands of dollars through Venmo. In Orlando, a woman had thousands drained from her Venmo account after a child asked to use her phone.

Similar thefts and robberies have been reported in various states across the country. Bragg is urging mobile payment companies to implement additional security measures, including transaction limits and two-step verification. He also called for better computer monitoring to detect fraud more efficiently.

Response from Mobile Payment Companies

Following Bragg's letters, mobile payment companies released statements addressing his concerns. Early Warning Services LLC, the network operator of Zelle, stated that only a fraction of a percent of transactions are reported as fraud or scams due to their strong security measures.

Cash App's spokesperson emphasized the preventive controls in place, such as multi-factor authentication and fraud detection, along with their collaboration with law enforcement. PayPal, the parent company of Venmo, highlighted their sophisticated fraud detection tools and enhanced security options within their apps.

Bragg is still awaiting a meeting with the companies to discuss and find solutions to the growing fraud problem. He emphasized the need for immediate action as more people are using mobile payment services, leading to increased fraud cases.