{"id":301547,"date":"2025-12-06T03:39:15","date_gmt":"2025-12-06T03:39:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/301547\/"},"modified":"2025-12-06T03:39:15","modified_gmt":"2025-12-06T03:39:15","slug":"after-venmos-outage-should-you-still-trust-it-with-your-money-deseret-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/301547\/","title":{"rendered":"After Venmo\u2019s outage, should you still trust it with your money? \u2013 Deseret News"},"content":{"rendered":"

Venmo says it is \u201cback up and running\u201d after a widespread outage Wednesday evening that left many users unable to send or receive money \u2014 and some scrambling to pay for dinner or medication, per The Associated Press<\/a>. <\/p>\n

Now a lot of people have gone to social media to ask a different question: Is it actually safe to keep money in Venmo or even connect a bank account to it?<\/p>\n

On Wednesday, reports of problems with the PayPal-owned payment app began spiking around 4:30 p.m. MST, according to Downdetector<\/a>, a site that tracks online outages. Tens of thousands of users reported issues.<\/p>\n

We’re aware that some users are experiencing issues with Venmo right now. Our team is working on a fix, and we’ll update you as soon as it’s resolved. Thanks for your patience.<\/p>\n

\u2014 Venmo (@Venmo) December 4, 2025<\/a> <\/p>\n

By late Wednesday night, Venmo posted on X<\/a> that the problem had been fixed and said the service was \u201cback up and running,\u201d apologizing for the inconvenience. The company has not publicly explained what caused the disruption.<\/p>\n

The app has experienced reliability issues before \u2014 Venmo was unavailable for some users during an Amazon Web Services outage<\/a> in October.<\/p>\n

For many, the incident was a reminder that a free app now sits in the middle of a lot of real-world transactions \u2014 rent, utilities, babysitting, concert tickets. Here\u2019s what to know about using Venmo.<\/p>\n

\"\"This March 20, 2018, file photo shows the Venmo app on an iPad in Baltimore. | Patrick Semansky, Associated Press How safe is Venmo as a service?<\/p>\n

Security experts generally describe Venmo as a legitimate service with standard protections for a modern financial app, while also warning about real risks from scams and account takeovers.<\/p>\n

According to Venmo\u2019s website<\/a>, the company:<\/p>\n

Uses encryption to protect stored account information and financial data.Monitors accounts for suspicious or unauthorized transactions.Offers tools like multifactor authentication and PIN codes to help lock down accounts.<\/p>\n

Where users tend to get hurt is less about the encryption and more about human behavior. Venmo warns<\/a> that it can become a target for scams \u2014 including fake overpayments, impostor accounts with similar usernames, and pressure to send money to someone who isn\u2019t actually known in real life.<\/p>\n

In other words: From a technical standpoint, Venmo is roughly as secure as many other mainstream payment apps. But like any money tool, it\u2019s only as safe as how it\u2019s used.<\/p>\n

Is it safe to link a bank account to Venmo?<\/p>\n

Linking a bank account is what makes Venmo work for most people. The app moves money through the banking system using standard transfer networks, and those connections are protected with encryption.<\/p>\n

A few key points:<\/p>\n

Venmo is not a bank. Venmo makes clear<\/a> the company itself does not take deposits and is not FDIC-insured.Your actual bank account stays at your bank. When you \u201clink\u201d an account, you\u2019re authorizing Venmo to move funds to and from that account. That connection is encrypted, and you can revoke it in the app or at your bank.The main risk is if your Venmo account gets hacked. If someone steals your Venmo login and bypasses security checks, they may be able to initiate transfers. That\u2019s why experts recommend strong, unique passwords, multifactor authentication and careful monitoring of account activity.<\/p>\n

For everyday users, Security.org<\/a> says that linking a bank account is reasonably safe when combined with good digital hygiene \u2014 especially compared with sharing routing and account numbers directly with strangers.<\/p>\n

Is it smart to keep a lot of money in your Venmo balance?<\/p>\n

This is where many regulators and financial planners get more cautious.<\/p>\n

Because Venmo is not a bank, money stored in your Venmo balance generally is not protected by federal deposit insurance in the way a checking or savings account would be.<\/p>\n

Venmo\u2019s own debit-card FAQ<\/a> notes that FDIC insurance applies to funds held at partner banks in certain situations \u2014 but that \u201cVenmo is not a bank, does not take deposits, and is not FDIC-insured,\u201d and pass-through insurance does not automatically cover all Venmo balances.<\/p>\n

In 2024, the Consumer Financial Protection Bureau issued<\/a> a broad advisory about nonbank payment apps, warning that money stored in apps like Venmo, Cash App and others is often not protected by deposit insurance at all. Keeping large balances in these apps could put consumers at greater risk if a company fails or funds are frozen.<\/p>\n

Because of that, it\u2019s recommended<\/a> to treat Venmo as a payment tool, not a place to stash savings or an emergency fund. A common rule of thumb: Keep only what is needed for short-term transfers, and move larger balances into a federally insured bank or credit union account.<\/p>\n

\"\"A Venmo mobile app shows it is not available during the Amazon Web Services outage, Oct. 20, 2025, in Chicago. | Kiichiro Sato, Associated Press What Wednesday\u2019s Venmo outage does \u2014 and doesn\u2019t \u2014 change<\/p>\n

This week\u2019s outage can bring up two questions:<\/p>\n

Reliability: Can the app go down at inconvenient times?Yes. Wednesday\u2019s outage \u2014 and previous disruptions tied to cloud-computing problems \u2014 show that even major payment apps can be temporarily unavailable.Safety: Does the outage mean Venmo is insecure?So far, there\u2019s no evidence that this incident was a hack or data breach. Venmo has framed it as a technical issue that has now been fixed.<\/p>\n

For users, the outage is a reminder to have backup options \u2014 a physical card, some cash, or an alternate app \u2014 especially for time-sensitive payments like prescriptions or transportation.<\/p>\n

Here\u2019s what people are saying on social media<\/p>\n

The fact that @Venmo<\/a> is down AND they don’t have any type of competent way to help the 1000s of people tryna log on rn is really grinding my gears<\/p>\n

\u2014 speedy, duh (@slowlycalhoun) December 4, 2025<\/a> <\/p>\n

My biggest mistake was having some direct deposits into my Venmo debit. Whenever it crashes, you literally lose access to your money and can’t even pay with it like now!<\/p>\n

\u2014 Sam (@fentymiletti) December 3, 2025<\/a> <\/p>\n

And Venmo is down so I can\u2019t even use my card to uber<\/p>\n

\u2014 Laura\u270c (@LauraMcCouch) December 3, 2025<\/a> <\/p>\n

Was at the store trying to pick up medication and not able to, need to get this fixed ASAP<\/p>\n

\u2014 Dorothy (@DSMAW) December 4, 2025<\/a> <\/p>\n

Learning that Venmo was down when everyone at the group dinner tried to Venmo tonight was fun.<\/p>\n

\u2014 Jonathan Wasserstrum (@jmwass) December 4, 2025<\/a>