Sending money to friends and paying for things online has never been easier, thanks to popular peer-to-peer (P2P) apps like Cash App, PayPal, and Venmo. But, from texts to social media posts, scammers are looking to take advantage of shoppers online. It’s more important than ever to know what to look for and how to protect your money and personal information.
Here’s how you can be smarter than scams.
Scammers know that cute puppy picture will pull at your heartstrings and then your purse strings. Pet deposit scams are simple: scammers request a deposit in advance, usually through an online marketplace or through social media to secure a pet. Scammers trick you by advertising highly sought-after animals at an extremely low price. They’ll even post fake (but really cute) photos and will avoid communicating over the phone at any cost. If you’re in the market for a new pet this holiday season, make sure you verify the seller, avoid making an advance payment, and pay after you’ve received your new furry friend.
There’s nothing like getting into the holiday spirit of giving by donating to your favorite cause. Charity scammers may solicit for donations in a variety of ways – in person, on the phone, by mail, email or through social media. Even if the charity has a website, it could be fake. Before you contribute, check the background of the charity to ensure the donations are going to the right place. Don’t let scammers get in the way of your holiday giving.
Plain and simple: if someone is asking you to pay them with a gift card, it’s likely a scam. Gift cards are like money – once used, the money on it is gone, and you can’t get it back. A gift card scammer will tell you it’s urgent (act quick!), tell you what gift card to buy (and where to go to buy it), and ask for the gift card number and pin. Save the gift card purchases for your friends and family this holiday season and avoid getting them into the hands of scammers.
Scammers will send phony invoices that look very real, hoping you will pay up because they want access to your personal and financial information. Be wary of any messages that pressure you into quickly paying to resolve an “issue” on your account. If you receive a suspicious invoice, don’t pay it – and don’t call any phone numbers or open any links associated with the invoice note. They could be attempts to steal your information.
Phishing scams are “fishing” for your private information. First, they try to “bait” you in by getting you to complete an action – like opening an attachment or clicking on a link. They then “reel you in” by successfully getting you to provide private personal and financial information. Scammers may use a variety of methods to contact you – social media, email, phone, and text message – and could even appear legitimate. If you receive a request that could be phishing, it’s best to avoid taking any action until you can verify the sender.
Scammers might try to steal your data or access your accounts by pretending to be someone else. If someone claiming to work for a peer-to-peer payment asks for your sensitive login information or a login code, they are probably a scammer. Never provide detailed personal information over the phone, email, social media, text messages, or other channels to someone claiming to work for customer support. If you think you are the target of a potential imposter scam, you should contact Customer Support directly through verified support channels on the Cash App, Venmo, or PayPal pages.
Scammers will try to steal your personal information to access your email, banking, and payment accounts. Protect yourself with these simple but powerful steps:
Scammers are counting on you to drop your defenses. But keeping your account scam-aware will shut them down. To better secure your account:
In general, if something sounds too good to be true (like free money in exchange for a small payment), it’s probably a scam. Scammers may try to impersonate people or companies you know and want your money fast. Before you press pay:
Fraud detection technology protects your account information and monitors your account activity to help identify unauthorized transactions.
Two-factor authentication is a security process that requires two different authentication factors for verification. It provides a higher level of security making it harder for scammers to gain access to your account.
These controls allow you to block or report suspicious users which can help protect your account and help protect others.
The Financial Technology Association (FTA) is a Washington, DC-based trade association representing industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation. Learn more at ftassociation.org.