Venmo Scams: Types, Solutions, and Precautions

Venmo is a mobile service founded in 2009 and owned by PayPal since 2013. It allows users to transact with various credit cards and to see others’ transaction histories. However, though Venmo is a reliable platform like PayPal, users still worry about its security. This worry comes from a lot of tricky scams on Venmo.

Next, we’ll introduce 8 common Venmo scams to help you stay alert and respond skillfully.

Is Venmo Safe?

According to the privacy policy of Venmo, we find that it stores users’ data in third-party servers located in data centers in the United States. Also, the Venmo official says they collect users’ information for just marketing purposes, product optimization, and other normal needs.

It also implements a range of security measures to safeguard users’ privacy, including regular identity verification, real-time encryption of user transactions, and comprehensive data management support.

However, many users’ assets are still being stolen on Venmo. This is because of some tricky scams on this app. Let’s see what they are.

Related: Venmo vs PayPal: Pick Your Perfect Digital Payment Partner

Common Venmo Scams

Transferring money through Venmo is very fast, almost instantly. Even if you realize that you have been scammed, your money might have been sent to a scammer already. So, it is critical to identify these scams previously. Here are the common scams on Venmo.

1. Catfishing Scams

In today’s era, people prefer to contact and fall in love with an online citizen they’ve never met. Step by step, they are addicted to this relationship and let their guard down easily.

Then, the moment is perfect for the scammer to ask the victim for financial help. The scammer might claim that they need money for medical treatment or further study purposes. Then, the victim might transfer money to the stranger through Venmo before they regret it.

2. Scammers Pretend as E-commerce Customer Services

Sometimes the scammers will pose as customer service from Amazon, Walmart, or Shopify. They say that your online transactions have some problems. Then, they will explain the issues coming from your Venmo account and ask you to provide the Venmo password so they can help you.

Once you do so, they will transfer all your money to their accounts and then deactivate the phone number.

3. Fake “Windfall” Promotion

Another Venmo scam presents as a fraudulent email or message saying you have won prizes or rewards on Venmo. It typically contains a phishing link used to hack your Venmo account and password.

What you need to know is that no official businesses or companies will notify users through this kind of method. They will never ask for sensitive information about your online banking account.

4. Job Scams

Sometimes the scammer will pose as an employer, offering a high-salary job on social media or website pages.

They are often in a foreign country, so they will ask you to use Telegram, Line, Messenger, or WhatsApp to contact them. After an interview, you will easily get the job offer. However, a fee is required before they officially employ you.

5. Scammers Pose as Bank Customer Service

Sometimes the scammer will call or text you, pretending they are the customer service from the bank you are using. Then, they will say that your account is stolen or has suspicious activities, or you need to verify your identity. Their phone numbers look like from a genuine bank. They also know your name, banking details, or transactions that have been leaked previously.

Then, they will ask for your Venmo account details to help them handle the problem. Once you do so, they can log into your account instantly and transfer your money.

Tip: To prevent a data leak, you can use a reliable VPN when browsing online. LightningX VPN can protect your data and privacy. It uses robust encryption algorithms like AES-256-GCM and ChaCha20-Poly1305.

6. Marketplace Scams

This is one of the most common Venmo scams today because it seems reliable and genuine. For example, when you sell something on the Facebook marketplace, scammers will pretend as a consumer and send you a fake email showing they have paid for your commodities. They say the Venmo official won’t give you the money until you upload the shipping information. After they receive the commodities, they will cancel their account and leave you regretful.

Another marketplace scam is that the scammer will use a stolen credit card to pay for your item. However, when you ship it out, Venmo will detect the fraud and ask you to pay back the stolen money.

What to know:

• If your Venmo account doesn’t receive the money, don’t ship any items.
• Make sure that the email is sent from the Venmo official.

7. Strange Refund Request

Sometimes you might receive a text from the scammer saying their money is mistakenly transferred to your Venmo account. Then, you might return the money. However, Venmo will discover the fraud and ask you to pay it back.

8. Scammers Pose as Your Close People

If your acquaintance’s Venmo account is hacked or taken over by a scammer, the fraudster may use it to trick you into sending money. Posing as someone you trust, the scammer will request a transfer to the compromised account.

This type of scam is common on Venmo, largely because people tend to let their guard down when dealing with friends or family.

What To Do If You Have Already Been Scammed

However, if you are unfortunately scammed on Venmo, try these methods below to avoid further scams.

• Change your Venmo password immediately.
• Contact Venmo support.
• Ask the bank service to help you get the money back or freeze the credit card.
• File a report to the police.
• Notify your contacts that your Venmo account has been stolen or hacked.

Conclusion

Venmo scams come in many forms. As technology continues to evolve, even more sophisticated schemes are likely to emerge. Nowadays, some scammers have started using AI to impersonate a victim’s family members in order to steal money, and unfortunately, this method is alarmingly effective. That’s why it’s crucial to stay alert to any suspicious requests or behavior to protect your finances.