Do you use one of those mobile pay apps, like Venmo, Zelle or Apple Pay? Anytime you have a lot of money changing hands, even digitally, there’s always a danger of fraud, and mobile pay apps are no exception. Rob talks about some of the latest scams.
Do you use one of those mobile pay apps, like Venmo, Zelle or Apple Pay? They sure are convenient. Unfortunately, scam artists have learned they’re a convenient way to separate you from your money. Anytime you have a lot of money changing hands, even digitally, there’s always a danger of fraud, and mobile pay apps are no exception. Rob talks about some of the latest scams.
Phishing is when scammers send out emails, pretending to be from a legitimate company, trying to get you to give up your personal financial information.
Smishing is when scammers send you a text, and in this case it’s to tell you that your mobile pay app, Venmo, Zelle, or some other is about to be charged but you can stop it by clicking the link and logging in.
You want to be vigilant about the domain name of any link you’re sent. If it looks suspicious or has typos, it’s probably a scam. The safest thing you can do, if you think there’s been an unauthorized charge to your account, is to use only the official app or website to check it out.
The next scam involves phony sales. Not all mobile pay apps are designed for business transactions. That’s because there’s no way to get your money back if someone scams you.
It’s always best to use a credit card, and not a debit card or mobile pay app to buy something online. That way, if there’s a problem, you can file a claim and get your money back. Mobile pay apps like Venmo, CashApp and Zelle aren’t required by law to have buyer protections in place so they don’t.
Next, we have the money transfer scam. And this one can get you if you use just about any mobile app, including Venmo, Cash App, Apple Pay, or Zelle.
For this scam, con artists use a stolen credit card. They’ll use as much balance as is on the card to transfer money to random people, like you. They will then claim the transfer was an accident and ask for the money back.
Because you’re an honest person you’ll probably return the money. But before you can do that, the scammer changes the card information from the stolen one to his own. So, he gets the refund. But later, when the stolen card owner notifies the issuer about the fraud, the transaction will be reversed, meaning the money comes out of your mobile app account a second time. You’ve been scammed and there are no protections in place to help you.
The bottom line is mobile pay apps are very convenient and a great way to transfer money to and from people you know like family and friends.
But you’re taking a risk using one to buy merchandise, unless the app is linked to a credit card that provides buyer protection.
Here are a couple of questions we answered from our callers on this program:
Is now a good time to refinance?
Is it realistic to buy a home when we are older in age?
I am a youth pastor in seminary. My institution has applied for a Covid relief grant. These funds are to be used for Covid relief issues. I can apply it to my tuition or take it as a check. Advice?
I am having to sell my home and move into an apartment. I can’t find a house to buy. Where is a good place to put my money so I can use it to pay things off?
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