Peer-to-peer (P2P) payment apps like Cash App, Zelle, Venmo, and PayPal allow users to transfer money to one another easily. However, understanding the potential risks associated with these platforms is crucial for keeping your money safe. While they offer convenience, they also present opportunities for scams. Here are some essential tips and red flags to help you avoid becoming a victim.

Scammers start by spoofing the P2P customer support phone number and calling people to alert them of "fraudulent behaviors." The bad actor instructs the person they're calling to download a separate app to their phone. This app gives the scammer remote access to the person's phone and potentially sensitive information.

During the call, the scammer asks the person to send money using P2P to a trusted contact, such as a friend or family member. The scammer then instructs the person to call their trusted contact to confirm the transfer. However, the funds go directly to the fraudsters instead of the trusted contact. Sometimes, the scammer may even have the person initiate a three-way call to bring in another victim.

Remember, P2P customer support will never call you to ask for your sign-in code, sensitive information, to send money to another P2P account, or to download an app for remote access. If someone calls and asks for any of these things, disconnect the call immediately and contact the P2P's customer support directly. Scammers might contact you via phone, text, direct message (DM), or email, pretending to work for a P2P service to obtain your P2P passcode and one-time password to access your account. Never share your P2P PIN or any other account details online, even if you receive an official-looking email or message.

Want to learn more about scams and schemes effecting our community? Learn more at our Fraud Fighter blog.