Be careful! Types of Venmo scams you should know

With over 50 million US users, Venmo is one of the most widely used mobile payment apps. Bills, rent, and cheques can all be split more easily this way. It’s also a lot quicker than sending money via wire transfer.

Scammers, of course, are always lurking around any transaction involving money. 

What is Venmo, and How Does it Work?

Founded by PayPal, Venmo is a payment application that allows users to pay and request money from people they know. Let’s imagine you and two pals took a Lyft together and want to split the cost. Payments may be made in seconds using Venmo, a service that connects you with individuals you know.

As a type of social media, the app allows users to see where their friends are sending money, remark on the transactions, and express their views to them. It is so popular with millennials looking for new ways to communicate.

Contacts from your phone’s address book can be imported and shown within the app. Additionally, Venmo offers debit cards that users can purchase from authorized merchants and mobile sites. As a result, you must have a bank account in the United States to use the app and make payments.

Venmo caters to those who don't give a damn about privacy and prefer a public way to send money. However, evil actors are always ready to defraud individuals when they grow too comfortable with their surroundings.

How You Can be Scammed in Venmo

Venmo texting Scam

Smishing, or phishing by SMS, is used in this case.

It's illegal to send emails appearing to be from a well-known business and ask for personal details, passwords, passwords for your company's accounts, or other sensitive information.

Con artists impersonating Venmo send texts to victims warning them that funds will be deducted from their accounts and requiring them to log in to stop it.

Many individuals are swayed by the urgency of this type of communication. To keep their money, they click the link and log in. On the other hand, scammers utilize the URL as a front to steal your personal information. The moment they acquire your login credentials, they're able to access your money without your knowledge.

The fake sale scam

Using Venmo as a business tool was never the intention. In other words, it’s designed solely for people to use and transact with each other privately.

However, because it is so simple to use, many people use it to shop. Venmo, on the other hand, relies primarily on the honor system when it comes to online transactions. Because the charges are irreversible, you must have faith that the person you transact with will deliver the things they promise.

Scammers can easily pose as sellers of goods or services on Venmo because the platform does not have a chargeback system. To put it another way, they have absolutely nothing to ship. Venmo does not have any buyer protection policies in place, so once they have your money, they’re gone.

The money transfer

Scammers connect stolen credit cards to Venmo and then transfer money to random recipients "by accident" in this multi-step scheme. In the end, they ask for the money they've already spent. They hope that you will be a law-abiding person and return the money.

Despite this, they update your stolen credit card information with their own before you can even begin the transfer process. It ensures that the money you provide reaches them.

By now, the person whose credit card information was compromised will have contacted their financial institution to report the incident. They will cancel their credit card and reverse the charges.

However, criminals must find money someplace. You've guessed it, haven't you? The cybercriminals will withdraw those funds from your bank account. Because the original credit card has been blocked, Venmo cannot undo the charges, and you have no other way to get your money back.

The in-person scams

Venmo scams are usually perpetrated online, but this one comes from con artists who aren’t afraid to take their tricks offline.

While internet scams are relatively new, in-person scams have been around for far longer. Let me walk you through it step-by-step.

The majority of scammers target people in non-crowded public settings. To make a quick phone call, they tell you they're in a bind and ask for your phone. Just say that your phone died or that you forgot it at home, and they'll take you up on your offer.

As soon as you've agreed, the con artists will pretend to phone a number that goes unanswered. Afterward, they propose that you send a text message instead. They're not, however, sending text messages. They're only making a fast transfer from your Venmo account.

How to Identify a Venmo Scam Threat

Precautions need to be taken while using online banking or payment services. We strongly advise you to check each payment twice before submitting it, and to do so; please follow these steps:

1. In emails or text messages, never click on a suspicious link.

2. Don’t send money to someone you don’t know.

3. Do not accept payments using Venmo for products or services.

4. Strangers should never be given your phone.

5. Instead of attempting to resolve a problem on your own, contact Venmo’s customer service team as soon as something suspicious occurs.

6. Keep an eye out for someone you don’t know getting in touch with you.

What to Do if Venmo scams you

It might be difficult to detect whether they're trying to defraud you using social engineering, manipulation, or other sneaky means when dealing with scammers.

Here’s what you need to do if you’ve been scammed.

• If your Venmo account is connected to your credit card, you must contact your bank to reverse the charges.

• Scams such as phishing and impersonating You should report Venmo employees to spoof@paypal.com.

• Inform your local authorities that you have been a victim of fraud and that you need assistance.

• If you feel that your Venmo account has been compromised or if you have been locked out of your account, don't hesitate to get in touch with the Venmo support center.

How to ensure security against Venmo scams

Use a strong password

Password strength is critical. Using your birth date or your name as a password is weak and can be cracked in moments by the correct software. Passwords should include special characters and digits in addition to upper and lowercase letters. If you're concerned about your security, you should invest in a password manager.

Enable two-factor authentication

Adding two-factor authentication to all of your accounts provides an additional layer of security. Venmo sends out an SMS or email for security reasons if someone attempts to log into your account from a separate device.

Use a reliable VPN

As a result of using a virtual private network (VPN), you will be protected from hackers and snoopers. Public Wi-Fi can be dangerous for your personal information; therefore, you must protect yourself using a virtual private network (VPN). You can have a lot of fun with the Venmo app if you know how to use it and take safety precautions. There will be an increase in Venmo frauds as users grow. It's always important to remain on the lookout for scam artists and stay one step ahead of them.

Conclusion

Your money is one of your important possessions, but even cybercriminals are looking for your money. It is why Turbo VPNhttps://turbovpn.com/ brings you the most efficient, easy to use and pocket-friendly VPN service. There are more tips for you to avoid scams.

Turbo VPN has strong encryption to enable you to interact with your Venmo account without your Internet Provider seeing what you are doing. Your ISP thus becomes unable to track you online.

You can also use one of the 21000 servers present within the Turbo VPN to connect to your Venmo account and ensure that your anonymity is assured.

Connect to Turbo VPN today and enjoy stress-free online transactions!