Scams about mobile payment apps are on the rise


Scams about mobile payment apps are on the rise

Consumers are increasingly using mobile payment applications. . – according to the report U.S. PIRG Training Fund, According to a 2020 study by Nerdwallet, 79% of Americans use mobile payment applications. Originally, they were advertised as a way for friends to share expenses.

Consumers can easily be fooled when they use mobile payment apps

The problem with these applications is that there is no customer service because phone numbers are often not displayed and security features only appear after the reputation of the application is threatened. For example, the above-mentioned report found that despite complaints from privacy experts, Venmo allowed users to hide the friends list only after the investigation report was able to name President Joe Biden’s Venmo friends list, including his grandchildren and other members. family.

Despite this invasion of privacy, Venmo’s default position is that the subscriber’s friends list is public.

As of April 2017, 2021, the Consumer Financial Protection Bureau (CFPB) received 9,277 complaints in the category “mobile phone or digital wallet.” In its first year, the CFPB received 1,000 selected digital wallets. Until April 2021, the number of digital wallet complaints was over 5,200.

In one month, in April of this year, 970 complaints about digital wallets were filed with the CFPB. That’s almost twice as much as the previous peak set in July 2020. The three most common complaints about digital wallets include problems with opening and closing accounts, handling fraud and scams, and dealing with unauthorized transactions.

Want to know which mobile payment apps have the most complaints? We try to please. Pay Pal has 4431 with the most complaints when it comes to the most problems, and the biggest complaint is “Managing, Opening or Closing a Mobile Phone Account”. Square is next with 1202 complaints, mainly concerning “unauthorized events or other incident problems.”

The top ten wrapping in numerical order is Coinbase (# 3, 755 complaints), PNC Bank (# 4, 594), JP Morgan Chase (# 5, 324), Bank of America (# 6, 262), Synchrony Financial (# 7, 224), early warning services (# 8, 212), Wells Fargo (# 9, 211) and Google Compare Credit Cards Inc. (# 10, 138).

Mobile payment apps try to alert consumers to popular systems in a number of ways, including the questions and answers found in the Cash App:

“Q: Is it safe to send money to people I don’t know? A: No! Only send payments to people you trust. […] Q: Can I deny a purchase if I pay someone in advance? A: Never pay anyone you don’t trust what you promise in the future (like a puppy of a future puppy or a lease on a new apartment). Most payments are immediate and usually cannot be canceled. “

Venmo also submits suggestions:

“Remember: Outside of paying paying merchants, Venmo is designed for payments between friends and people who trust each other. […] In short: 1) Be careful. Don’t use Venmo to join a pyramid, cash wheel, money circle, or other fast-paced scam. 2) Don’t use Venmo to sell anything to others. 3) Don’t use Venmo to buy anything from someone you don’t know and don’t trust. “

Subscribers can get rid of phishing programs

Zelle is also trying to get consumers on the right track by telling them that “Zelle is a quick, safe and easy way to send money to friends and family. It’s similar to cash. So you want to make sure you only use it to pay people. You know and trust like your roommate, your father or babysitter. No people you don’t know, like that stranger on the Internet who sells suspiciously cheap puppies from a place you’ve never heard of. ”

Some users of the mobile payment app reported how frustrated they were to learn that their account had been closed for no reason. One said, “Venmo closed my account for no reason and won’t help me get it back and go.” Another consumer stated, “Zelle doesn’t have a” customer service department to call “and suggests you call your own bank first.

However, Zelle does her best in warning consumers about phishing scams: “Scammers scam calls and send eye-catching emails to your bank. Be careful not to click on links in emails, never give any information on the phone on the back of a bank / ATM card issued by your bank or on the bank’s official website if you need to provide information by phone.

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