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What are P2P payments?
P2P is a common abbreviation for Peer-to-Peer payments. These payments are used in apps like Venmo and Zelle (the two most popular) or CashApp, which has recently seen an increase in fraud. Basically, it’s when one person pays another person through an electronic transaction (online or mobile app) using their account or card information.
What are common P2P app frauds?
1. Online schemes where the victim purchases a product or service with a P2P payment app, then the money disappears and the service or product never arrives.
2. Fraudsters steal credit card information and create P2P app accounts with the info.
3. Fraudsters call victims and impersonate fraud departments while asking for personal information. They then use this personal info to create P2P app accounts and take the money.
4. Fraudsters may ask to use a victim’s phone, stating it’s an emergency. While pretending to send a text, instead they go to a P2P app and transfer funds.
5. Highly skilled fraudsters can hack into a victim’s phone and gain access to apps where the username and password are stored.
How do I prevent P2P payment fraud?
1. Never send money to someone you haven’t met in person.
2. Double check the username or phone number of the person you are sending money to.
3. Always opt in for stronger security like a PIN or facial recognition.
4. Before using a P2P app, search the customer service information so you know where to go if you have a dispute.
5. Make sure any P2P apps are up to date, so they always shave the latest protection and security features.
6. Set up transaction alerts so you are notified immediately anytime your account is used. If you have a DECU card, you can do that here.
7. Consider linking your credit card instead of your debit card.
8. Do not let strangers borrow your phone.
9. If you suspect fraud, freeze your card immediately.
10. If this happens to you, you can lodge a complaint at fraud.org.