The convenience of money transfer apps is taking them to new heights of popularity. Our society is glued to our phones, so why not keep our money in the same device? Apps such as Venmo, Cash App and Zelle have become all the rage, allowing people to request and transfer money to friends, landlords, coworkers and even businesses. But any time you involve money, nothing is risk-free. People will always find a way to scam you out of your hard-earned cash. Our hosts Philip Michael and Julia Sun discuss the dangers you should watch out for.
Don’t send your money to a scammer
The first rule of money transfer apps is to make sure you send money to the right person. Double-check their username and profile pic. When you don’t know the recipient personally, ask them to send you a screenshot of their profile so you know you have the right person. If you accidentally send money to the wrong John Doe, contact the app’s support system immediately. But if they don’t refund the money, reach out to your bank and ask them to reverse the transaction. Finally, you don’t want your friends to remake your mistakes. So if the wrong person takes your money, report the scammer to the Federal Trade Commission.
Money transfer apps may charge you
Sometimes scams aren’t accidents. They’re built into the app’s design. Many of these payment apps require a small payment for immediate transfers. For example, Venmo your landlord $1,000 on the day rent is due, your app will charge an extra fee. This amount depends on the individual company’s guidelines. If you don’t want the app to rip you off, try to always use the feature that transfers money within a couple of days. Ultimately, the key to using these apps is to pay attention. Vigilance could be all you need to avoid getting duped.