It’s not just you. Everybody seems to be getting those toll road and “unclaimed package” text-message scams right now. Cybersecurity experts at Palo Alto Networks Unit 42 have reported that one threat actor recently registered 10,000 web domains to impersonate package-delivery and toll services.
Digital payment apps like Zelle, Venmo, Cash App and PayPal are particularly at risk, simply because they make sending money to others so easy. Scammers know this, which is why they often ask victims to use them.
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Since Zelle launched in 2017, customers at three banks lost over $870 million to scams on the app, according to a lawsuit filed by the Consumers Financial Protection Bureau. To help stop the scams, banking giant JPMorgan Chase has started blocking certain Zelle transactions originating from social media.
Getting your money back can be nearly impossible once you send it via digital payment app. Read on to learn scammers’ most common schemes to keep your money out of their hands and what to do if you slip up.
9 common digital payment app scams
Con artists can be creative, but most digital payment scams fall into the following categories.
💰 Cash flipping scam
You get a DM from someone on Instagram or another social media platform with an appealing offer: “Send me $100, and I’ll use an app partnership to turn it into $500 in days.” Sounds too good to be true? That’s because it is. No one, especially some stranger on the internet, can exponentially grow your money immediately.
🎣 Phishing scam
You get an email from someone who claims to work at a mobile payment app asking you to click a link and update your information to upgrade your account or accept a payment. This is a standard phishing expedition, a scam that tricks people into sharing sensitive information with someone they think is a trusted source.
If you click the link, your phone can be infected with malware that hijacks your account. Never click an email link requesting login credentials or other personal details, even if it looks legitimate. Contact customer service through the payment app to verify the request.
Mobile payment apps probably won’t send you a link to update your information. You can do that directly in the app if you need to.
Digital payment app updates can include features that strengthen the app’s security measures. By keeping your app up-to-date, you can further protect yourself from scams.
