As one of the world's most popular money-sharing apps, Venmo has its fair share of scams. Where there is money to be swindled and stolen, you can always find willing thieves. As Venmo focuses primarily on transactions between friends, family, and other close acquaintances, that's what the majority of scams focus upon.
Venmo has other issues, too, lacking the fraud protections you might find with other payment apps.
So, here are the five most common Venmo scams, how to spot them, and whether Venmo is safe for users.
1. Venmo Phishing Scams
Venmo users are frequent targets for phishing scams, usually delivered via SMS. These scams, also known as "smishing" (like phishing but with SMS), trick an unsuspecting user into clicking a disguised link delivered via a standard text message.
❗️Phishing scam! I already reported this to Venmo! If you use Venmo and get this text PLEASE don’t click on it. Just report it. ❗️#scam #phishing pic.twitter.com/8vTwyERpy4
— Vanessa Martinez🎙️🎧 (@vanessactress) August 20, 2020
The text appears to come from an official Venmo account, and the user is encouraged to click the link to fix an issue with their Venmo account or a previous payment. When the user clicks the link, they arrive at what looks like exactly like a Venmo login page. The fake page will ask for login details, and potentially even straight-up ask for your credit or debit card information.
A Venmo phishing page #cybersecurity #infosec #security #cybercrime https://t.co/jZxIqPpaY2 pic.twitter.com/u92uuI14CT
— Bolster Inc. (@BolsterAI) August 27, 2020
In reality, the phishing page captures any information you input, and your user data is stolen. Phishing scams are everywhere and feature consistently in our list of the top internet scams.
How to Avoid Venmo Phishing Scams?
First, know that Venmo will never ask you to provide your card information via text message. That's a common scam technique that affects all payment platforms, including PayPal, your bank, and everything in-between.
Second, you should never click links in text messages or emails sent to you out of the blue. These links are usually scams. If you believe there is an issue with your account, contact Venmo's customer service---but not via the link in the message!
2020 brought forward a new type of phishing scam. Here's how you spot and avoid COVID-19 phishing scams of all kinds.
2. Venmo Credit Card Reverse Charge Scam
One common Venmo scam is a reverse charge scam, using a stolen credit card. This scam relies on you trusting the person you're dealing with, perhaps having sold something using an online marketplace.
Imagine falling for a Venmo scam 😭 couldn’t be me. (Someone pls send me my $30 back 🙏)
— Ryan (@ryanttaylor99) September 16, 2020
The scammer contacts you and makes the purchase. They transfer the funds to you using Venmo, and everything seems completely normal. Then, a few days later, the credit card company receives notification that the card in the transaction is stolen, the transaction reverses, leaving you out of pocket and without the item you sold.
How to Avoid Venmo Credit Card Reverse Charge Scam?
The official Venmo advice is not to "use Venmo to buy anything from anyone you don't know and trust." Which is, in fairness, good advice.
Going one step further, if someone you don't know suggests using Venmo to complete a transaction for an online sale, you should force them to use an alternative platform. If they don't want to use an alternative platform, consider breaking off the transaction.
But credit card fraud is rife, and you should learn and understand the signs of a common scam.
3. Venmo Fake Sale Scams
Running alongside stolen credit card scams are sales of items or services that don't exist. The proliferation of online sales platforms, especially those focusing on local sales such as Craiglist or Facebook Marketplace, make fake sales a major issue.
The scam works as you might expect. You find something you want to buy, so you contact the seller. After agreeing to a price, the seller tells you to pay using Venmo, which you do. Then you wait, nothing ever arrives, and the seller disappears into the ether. There is no recourse via Venmo or the seller, and you've lost out.
How to Avoid Venmo Fake Sale Scams?
Like phishing scams, fake sale scams affect all online marketplaces, not just Venmo. You can boost your safety if you use services with seller rating systems or feedback systems, though these do tend to have an internal or secure payment option, such as eBay.
You can avoid fake sales scams by only using Venmo to make transactions with people you know and trust. Use a different platform if you need to make a purchase from someone you don't know.
4. Venmo In-Person Scam
The Venmo in-person scam is one of the boldest. The scammer siphons off cash from your Venmo account in front of you---after you put your phone in their hands.
The premise of the scam plays upon your kindness and good-will towards a person in need. The scammer approaches you on the street, asking to use your smartphone because there's an issue with theirs. They'll "try" to phone a friend, but say that the connection is failing---can they send a message instead?
When you allow them to send the message, they open your Venmo app and instantly send a payment to their account before closing the app (potentially even deleting the app) and handing the smartphone back. It is a brazen scam that relies on you having Venmo on your phone to begin with.
How to Avoid a Venmo In-Person Scam
The easiest way to avoid this scam is to never lend your smartphone to a random person on the street. Alternatively, have them dictate the message to you along with the number they want to send it to.
Another option is to make sure any monetary transactions require an additional security step, such as your password or a fingerprint.
5. Venmo Fake Payment Scam
A Venmo fake payment is another fairly common scam.
A Venmo scammer will send you money out of the blue, appearing in your Venmo account. Then, they'll send you a message saying, "Oops, sent you some money by mistake, could you send it back?" When you send the money back, they reverse the initial payment and have their starter money and your money.
@venmo what do I do when a stranger pays me money and I think it’s a scam?
— Christy Kinney (@ccmkinney) September 25, 2020
How to Avoid the Venmo Fake Payment Scam
If someone you don't know sends you money without warning, then demands it back instantly, you should do two things. First, ignore them---it's a scam. Second, report the scammer to Venmo. Hopefully, they'll close the account before it scams anyone else.
Watch Out for Venmo Scams
These five Venmo scams represent the most common methods a thief will employ to get at your cash. Some scammers are very persuasive, while others will become downright aggressive in their attempt to steal from you. In each case, take your time and assess the situation before following a random link, pressing to accept a request, or transferring any funds.
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