How to Use P2P Payment Apps Wisely
For consumers, peer-to-peer (P2P) payment methods like Zelle® can be a convenient way to transfer money to family and friends. But did you know that these types of payments can also be susceptible to fraud? Awareness of scammers’ methods and some general ground rules for using P2P payments wisely will help you avoid becoming a victim of P2P fraud.
What to look out for:
There are 4 main types of scams to be on the lookout for when utilizing P2P payments:
- Social engineering - when a scammer uses manipulative tactics to get you to divulge personal information or login credentials.
- Stolen identity scam - when a criminal uses your personal information to set up a P2P account in your name to make fraudulent transactions.
- Consumer scam - when a seller requests payment through the app, but then never sends the product or provides the service.
- Unknown links & unrecognized text messages - that require you to enter P2P credentials are also important to be on the lookout for as they can lead to your account being compromised.
Six simples ways to avoid fraud on P2P apps:
- Never share any personal information or your P2P login information with anyone.
- Enable security alerts and features like multi-factor authentication or biometric login (fingerprint or facial recognition) on your P2P account and phone.
- Monitor your P2P account and bank account activity regularly and enable alerts for any suspicious activity. You can do this in online banking.
- Only make P2P payments with people that you know and trust, such as friends and family. This means you should only send money to people you’ve personally shared user ID and information with.
- Always create a strong and unique password for your P2P account, and don’t use the same password for multiple accounts.
- Make sure to keep your app up to date by downloading the most recent software updates.