Digital Payments Fraud

Deceptive or unlawful transactions orchestrated by cybercriminals.

Digital payment services are often pre-built into many banking apps such as those used by Credit Unions or Banks. These services link to the user's bank account and allows them to send money to other people instantly using an email address or phone number. Alternatively, third party peer-to-peer payment services also offer similar functionality, such as Venmo or Cash App but are offered by another company other than your financial institution. Both of these services are great ways to move money quickly and easily. Unfortunately, this speed and ease also makes it a target for scammers.

As these services are typically linked to your accounts, you want to treat your credentials and access to them with the same precautions you would as with your accounts. Never share your username, password, or two-factor pin. When using these services, you should consider any transfer made like a payment you would do with cash – immediate and harder to recover or dispute if the seller doesn’t follow through.

Here are a few tips for using these services to help keep you safe:

• Use multifactor authentication and never share your one-time codes.
• Sign up to receive text or email alerts.
• Only use digital payment services to pay people you know.
• Make sure to confirm who you are sending funds to is the right person.
• The IRS nor Microsoft will ever ask you to pay them through Venmo.

** If you still have access to the payment service account, also look to change any usernames or passwords as soon as possible to limit unauthorized access. **

It is also always a good idea to file a fraud report with the FTC whenever you’re a victim.

To learn more, please visit reportfraud.ftc.gov

Additional Resources:

• Enrich Article: Managing Your Money With Peer-to-Peer Payment Services
• Webinar Recording: Digital Payment Network Fraud