Americans lost over $6.9 billion to cybercrime scams in 2021.1 As digital transfer tools become more popular and widely used, more schemers and scammers could be using apps to try to steal your money.
It’s easy to send money using payment apps, or using Zelle® in your banking app. But as with any method of payment, you should always be on the lookout for suspicious activity and scams. Scammers often pose as trustworthy individuals or agencies and ask you to transfer money to them. Once they receive the money, the scammers disappear, making it difficult to recover your money.
Knowledge is the best defense against digital payment scams. Here are six ways to protect yourself from becoming a victim.
1. Select recipients carefully
If a request for payment doesn’t seem right, it probably isn’t. Never send money to someone you’ve just met or never met, or to someone who pops up out of the blue after being out of touch and asks for money. Only send money to friends, family and product or service providers you know and trust, such as your hair stylist or lawn maintenance team.
2. Don’t give in to pressure
Scammers often pose as representatives of a financial or government agency and threaten you with penalties, account closure or even jail time if you don’t make a payment. Don’t give in to intimidation or threats. Instead, contact the agency directly and ask if there is an issue with your account.
3. Guard your information
Some scammers will push you to give them your login details to “verify your identity.” Remember: No bank or government agency will call you and ask for your identifying information, including account numbers, passwords or PINs.
4. Report unexpected payments
An unexpected payment to your account may seem like a good thing, but it’s actually a scammer’s way of testing whether your account is live. Report any unexpected payments, no matter how small, to your financial institution.
5. Treat money transfer apps like cash
If you send money to someone you don’t know for a product or service you might not receive — like paying for something in advance — you may not get your money back. And when using Zelle®, you can’t cancel a payment once it’s been sent if the recipient is already enrolled with Zelle®. That’s why it’s important to get it right the first time.
6. Confirm your recipient’s contact information
Make sure you have the correct mobile number or email address for the person you’re sending money to. When in doubt, contact them to double-check their details. If you send money to the wrong person, there’s a chance you won’t get your money back.
Will you be able to spot and avoid a potential scam? To learn more about app-based scams, and how to avoid becoming a victim of fraud, read How to avoid common payment scams.
