Safe Ways to Use Peer-to-Peer Payment Apps

Peer-to-peer (P2P) payment apps like Venmo, Zelle, and Cash App, known for making sending money between friends and family easy, quickly gained popularity in 2019. As the number of users increased, scammers saw an opportunity to use this new platform for their gain.

Here's What You Need to Know
Instead of using of using these P2P apps to safely pay someone you know, scammers want you to pay them for a product you might find on Facebook Marketplace, Craigslist, or another online sales website.

The fraudster will make it sound simple – just use your P2P app and an email address or telephone number they give you to transfer the cash from your account to them and then they’ll send you the product. The scam is, there is no product and there’s little chance you’ll ever see your money again.

Why it Happens
While these mobile apps are great for paying people you know, they don’t yet have the same consumer protections against fraud that come with using credit or debit cards. Experts say to think of them a lot like cash: If you give money to the wrong person it’s likely that cash is gone for good.

How to Use P2P Apps Safely
The best way to use peer-to-peer mobile apps is to pay someone you know or trust – like family members, friends, the babysitter or the person who always mows your lawn. Always verify the email address or telephone number when sending the money so it doesn’t go to the wrong person.

Don’t use your app to pay for products or services from people you don’t know. If someone makes this payment method a requirement for something like an online purchase, it’s probably a scam.

Bottom line: Use these apps for reimbursing people you trust, not for paying people you don’t know.

What to Do If You Believe You've Been Scammed
If you believe you have been scammed, the Kitsap Credit Union team would be happy to help walk you through what steps to take next. Give us a call anytime at 800-422-5852 or feel free to send us a secure message in Online Banking or our Mobile App. You can always report fraud cases to the FTC.