The New York State Department of State’s Divisions of Consumer Protections is offering tips on how you can protect your money using payment apps.
The tips from the Divisions of Consumer Protections are for people who use Venmo, Cash App, Zelle or any other financial app. These apps typically allow users to send money to others.
The division said, that in 2024, payment app users across the country reported more than $390 million in losses to the US Federal Trade Commission from scams that used payment apps or services. That’s $100 million more than what was reported in 2023.
Tips on how to protect your money:
Don’t leave large amounts of money in payment apps — Regularly transfer your payment app balance into a traditional checking account which has greater legal protections for your money.Only send money to people you know and trust — Never let somebody you haven’t met pressure you into sending money. Sending money through payment apps is a lot like paying cash. Once it’s gone, it’s gone. Even when you know the person, always double check that you’re sending the right amount of money to the right account.Avoid linking to your entire bank account — Many payment apps encourage consumers to link their bank’s account and routing numbers to the app. This can leave your entire bank account vulnerable in hacking attempts. Linking to a credit card instead can be more secure.Set your account to private — Some payment apps set account privacy settings to “public” as the default setting, meaning anybody on the app can see your transactions. Check your security settings and use the most private settings whenever possible.Use strong security features and settings — Utilize features like fingerprint or facial recognition for transactions. Regularly update your payment app to ensure you have the latest security patches and features.
If you think you’ve been scammed, you can make a report to the FTC at this link.