Money transfer apps dangerous?

money transfertPhoto byUSA Diario

In the digital world, some applications that function as online transfer services have captured the attention of millions of customers.

We are talking about applications such as Zelle, for sending money, or Venmo for making payments to third parties. The truth is that their main utilities lie in sending instant payments without the need to complicate things too much.

In this regard, The New York Times reviewed a Consumer Reports survey of 2022 that yielded substantial data. It found that half of Americans use this type of platform.

However, another survey reviewed by the popular newspaper and conducted by J.D. Power corroborated a kind of fraud. That is, at least 25% of banking customers indicated that they have experienced fraud through peer-to-peer services such as Zelle.

Likewise, Consumer Reports indicated that 12% of the users of these applications have been confused when sending money, sending it to the wrong person.

In this sense, what should I know about scams?

The New York Times alerts that as a result of frauds and scams in 2021, banks indicate that Zelle victims lost about $440 million.

It is important to know that the most common Zelle or Venmo scams start with an unknown call, text message or email.

Typically, you are asked to conduct a transaction to a specific number. Scammers often use telephone mediation services to lend legitimacy to their call.

These scams have many versions, including: fake digital romances, deals with cryptocurrencies, or cheap tickets to exclusive events and vacations.

At least 18 million Americans were scammed in 2020 during situations involving digital wallets and person-to-person payment methods.

However, there are always precautions you can take when using these apps. For example, you should carefully review every piece of information about the transaction and the person who will receive the money. You should also confirm the name, phone number, or email address of the person receiving the money.

We also suggest you send a small test payment ($1.00 USD) to confirm that the money is going to the right person. It is important that you do not use this type of application in front of strangers, and take security measures such as two-step authentication.