Payment App Scams: How to Avoid Losing Money

Payment apps like Venmo, PayPal, and Cash App make it easy to send money in seconds. But scammers are increasingly using these platforms to take advantage of unsuspecting users. One of the most common scams right now is known as the “accidental payment scam.” Understanding how it works can help you avoid losing money.

How the “Accidental Payment” Scam Works

This payment app scam often begins with an unexpected payment from someone you don’t know. Shortly after, the sender may message you:

• “I sent this by mistake, can you send it back?”
• “That payment wasn’t meant for you, please return it”

While it may seem legitimate, here’s what’s actually happening:

The scammer sends money using a stolen or compromised credit card. You send the money back, thinking you’re helping, but the original transaction is later reversed as fraud. The money you sent is now gone and you are responsible for the loss. Unlike traditional banking transactions, payment apps typically do not offer the same protections once money is sent voluntarily.

What to Do If You Receive an Unexpected Payment

If you receive money from someone you don’t know:

• Do not send the money back
• Do not respond to the sender
• Do not click any links

Instead: 

• Report the transaction within the payment app 
• Leave the funds in your account while it’s reviewed

How to Avoid Payment App Scams

Protect yourself from payment app fraud with these simple steps:

• Only send money to people you know and trust
• Double-check usernames before sending money
• Be cautious of unexpected payments
• Enable alerts and security settings

Learn more about recognizing fraud in our related article:  How to Spot a Scam

What to Do If You’ve Been Scammed

If you believe you’ve fallen victim to a financial scam, act quickly:

• Contact the payment app immediately
• Notify your bank
• Monitor your accounts

For additional guidance, read this blog:  What to Do If You’re a Victim of Fraud 

At Five Points Bank, we’re committed to helping you stay informed about the latest bank scams and fraud trends. Payment apps are convenient, but they should always be used carefully. 

FAQ SECTION

Can someone scam you on Venmo by sending money? Yes. In an “accidental payment scam,” a fraudster sends money using a stolen card, asks you to send it back, and then the original payment is reversed, leaving you at a loss.

Should I send money back if someone says it was a mistake? No. Do not send money back manually. Report the transaction through the payment app instead.

Are Venmo, PayPal, and Cash App safe? These apps are safe when used with people you trust. However, they offer limited protection if you voluntarily send money to a scammer.

What should I do if I already sent money to a scammer? Contact the payment app immediately, notify your bank, and monitor your accounts for suspicious activity.