Venmo scams occur when an unauthorized third party gains access to your Venmo account or funds. As a recap, Venmo allows individuals and businesses to send payments to other parties without the need for a physical card. Venmo accounts are linked to your checking account and payments are initiated through the Venmo app.
Unfortunately, these popular payment apps, like Venmo, are prime targets for scams. Even though Venmo outlines restrictions in its User Agreement, hackers and scammers often engage in Venmo scams that can have serious financial consequences for your business.
If your business is a victim of Venmo fraud, it is difficult to recoup the funds. This makes it important to understand common scams and how you can avoid them.
A fake prize scam occurs when a fraudster sends you a text message, email, or phone call saying you won money from Venmo. Then, they route you to a link that requests your login details. Once they gain access to your Venmo account, they will either send themselves money or withdraw your current funds to a different account.
To avoid this scam, never provide your login credentials outside of the Venmo platform. Venmo will never request that you log in through a link. If you do receive an email, it will be from an email address ending in venmo.com.
The next type of scam occurs when the scammer encounters multi-factor authentication. Venmo requires outside device logins to enter a password and use a code. If a scammer is able to guess your password correctly, they may get hung up on the multi-factor authentication step. Once the code is provided, they wipe your funds or transfer money into a different Venmo account.
Any suspicious emails, calls, or text messages asking for a code or other authentication factor are scams. Immediately delete or block suspicious communications and never provide your verification code over the phone. Venmo support will never ask for this code. In addition, Venmo will never ask you to install a third-party app, create an account on your behalf, or access your account remotely.
Another scam that is less common to detect is fake payment confirmation. When selling goods or services online, you might request payment upfront. Scammers may send screenshots of fake emails that make it look like they’ve submitted a payment when they haven’t. Additionally, if a customer tells you the payment will only go through once the good ships, that is false. Payments go through automatically.
Moreover, fake payment confirmations happen when a scammer uses a stolen credit card or bank information. If the actual owner of the accounts reports the unauthorized activities and identity theft, the money could be taken out of your Venmo account even if you have already shipped the goods.
To avoid fake payment confirmation scams, be sure you double check the confirmation email. A legitimate Venmo email address will end in venmo.com. Also, don’t accept any screenshot confirmations.
Buying items through Venmo can also open the door to scams. Some scammers require you to pay for goods and services upfront. Then, they never deliver their end of the contract, leaving you out the money. This is common when it comes to rare and collectible items. To further advance the scheme, the Venmo scammer will send you fake shipping information.
Only purchase things from Venmo-approved business accounts. If you do buy from a personal profile, mark the transaction as a purchase so it qualifies for Venmo Purchase Protection. You have more recourse against transactions under the Venmo Purchase Protection program.
Fake Venmo profiles are becoming another popular scam on the Venmo payment app. In this scam, the fraudster will set up a Venmo purchase based on one of your friends or business contacts, including the same profile picture and a similar name. Then, they will request money from you. Without double-checking the profile for authenticity, you might send money to the scammer.
If you get a payment request from a friend or business contact that you weren’t expecting, double-check that the profile is legitimate. In addition, reach out to the individual or business outside of Venmo to confirm that the request is legit. If the profile is fraud, be sure to block the individual to avoid any issues going forward.
In a random payment Venmo scam, you will receive a payment from an unknown source. Then, the account will reach out, say they accidentally sent you the payment, and request that you send the funds back, sometimes in a money transfer. The individual who sent you money could be using stolen information.
Once you send the payment to a new account, you could be out those funds and face another withdrawal since fraudulent funds were deposited into your account. If you receive a random payment, do not send it back. Contact your bank or Venmo, and they can deal with the next steps.
Romance scams occur when a scammer reaches out to you with a fake profile. After they gain your trust, they may ask for money sent through Venmo to cover expenses for coming to visit you. In some cases, a romance scam presents itself as a business opportunity.
Regardless, once they receive your money, they cut all communication, leaving you out the money. To avoid this scam, never send money to an individual or business that isn’t credible.
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