Money transfer apps has fast become part of many people's daily life since its let them easily catch up with their transactions even from home. Venmo, PayPal, Cash App and Apple Pay are some of the most well known online money transfer apps around the world.
Did you know that peer-to-peer payment apps like Venmo, Cash App, and Zelle have fraud rates three to four times higher than credit cards?
Undoubtedly, everywhere money is involved, scammers will always show up.
Venmo is an easy way to send money to a friend or relative but this platform, like many others, is being used to scam unsuspecting victims. So with this types of issued going on, some Venmo users wish to know if Venmo will refund their money if scammed.
Since scams are common around the world, you must be very alert when using money transfer platforms like Venmo so as to avoid falling into the hands of scammers.
Luckily for you, you are able to protect yourself from Venmo scams by knowing what to look out for and that is exactly what we will be covering in this guide.
Want to know how to get money back from Venmo if scammed? then stay glued to this article as I will show what to do if you get scammed on Venmo.
Table of Contents
What Are Venmo Scams?
Venmo scams are schemes developed by fraudulent individuals to trick Venmo users into sending scammers money or personal information, such as bank accounts or social security numbers (SSN).
Why Do Scammers Target Venmo?
Obviously, everywhere money is involved, scammers will always be there to trick people into falling into their traps and Venmo is money transfer service which is widely used.
First, Venmo transfers appear nearly instantly, but are not verified for a few days. This is the main reason why it is harder for banks to catch scammers who are using stolen credit cards or bank accounts. If the real user files a credit card or fraud claim, the money sent to the scammer cannot be recovered.
Secondly, Venmo is also anonymous than other money transfer apps. Scammers are able to create fraudulent accounts or pose as legitimate users to request money.
Though there are many types of Venmo scams, they most often follow one of the patterns that you will see listed below.
Overpayment or mistake payment Scams: A person accidentally sends you too much money for an online payment and asks for a refund. But in reality, they have used a stolen credit card or bank account to make the transfer.
Impersonator Scams: A Person impersonates one of your friends and then ask you to send them money.
Fake Venmo Employee Scams: You receive a phone call or email from someone claiming to work at Venmo who asks for your information to “help” you.
Fee Money Scams: You receive a message from a scammer stating that you have won free money on Venmo and that you must enter your bank information to claim the money.
How to Identify a Scam?
Venmo scams are not so easy to identify, although some signs may suggest someone is trying to take advantage of you. These may include:
- Someone is striving to appear trustworthy.
- Sob stories.
- An offer of a generous financial incentive.
Scammers will always strive to gain their victims’ trust by appealing to their emotions, so always keep your guard up to avoid problems.
ALSO READ: How To Get Money Back From PayPal If Scammed [3 Easy Ways].
How to Protect Yourself From Venmo Scams
The sad truth is that Venmo transfers are like Cash and if you send a scammer money over Venmo or provide them with a any personal information, then you could be at risk of identity theft and other types of financial fraud.
You cannot totally avoid Venmo scams, but you can actually do much to avoid yourself from veung scammed on Venmo.
Below are some of the things to do in order to protect yourself from being scammed on Venmo.
1. Only Use Venmo With People You Know and Trust
Put in your mind that Venmo transfer are like cash, once it is gone, it becomes almost impossible to get it back. Also though refusing free money is not that easy but do not cultivate the habit of accepting payments from people that you do not know and make sure you report any account that randomly request money from you.
2. Consider Signing Up for identity Theft Protection
This is an effective way for you to avoid being scammed on Venmo and Aura's top rated identity theft protection monitors all of your most sensitive personal information, online accounts and finances for signs of fraud.
If a Venmo scammer attempts to access your accounts or finances, Aura can help you take action before it is too late. So you can try Aura's 14-day free trial for immediate protection.
3. Regularly Check Your Credit Report and bank Statements
Venmo scammers are almost always after access to your financial accounts. Be on the lookout for the warning signs of identity theft — such as strange charges on your bank statement or accounts you don’t recognize.
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Can You Get Your Money Back on Venmo If Scammed?
Well if you send money to a stranger or get scammed on Venmo, you have low chances of getting your money back.
Unlike credit cards or debit cards that have fraud protection and chargeback systems in place, Venmo regards your money more as cash reason why it is difficult to recover it once the payment is made.
You are more likely to recover stolen funds if you use payment service like PayPal instead of Venmo.
However, if you are defrauded, this does not necessarily indicate that all is lost. Purchase protection may apply if you send a Venmo transfer to a recognized company or designate a payment to a personal profile as a purchase.
What to Do If You Get Scammed On Venmo?
Though Venmo makes it simple and convenient for your to send money to family and friends, it makes you vulnerable to identity theft and fraud if you do not take the proper action.
If you are sure that you have been scammed, stop all contact with the scammer and then follow these steps for the best chance of getting minimizing the damage and getting your money back:
Report the Scam to Venmo's Security Support Immediately
Once you believe you have been scammed on Venmo, the most essential thing to do is to get in touch with Venmo about an authorized transaction. If you have receive a fake Venmo email, you can forward it to phishing@venmo.com. If you receive a fake text, email a screenshot of the text to support@venmo.com and then delete the email from your account.
ALSO READ: How To Get Money Back On Cash App If Scammed [Complete Procedure].
Report the Fraud to the Federal Trade Commission (FTC)
The FTC has resources for victims of fraud at identityTheft.gov. In case you attempt to recover lost funds. you will most likely need an FTC report to do so.
Contact Your Bank and Let Them Know About the Fraud
It is especially important to undertake this step if the scammer has gained access to your bank information, SSN, or other personal information.
Update Your Venmo Password (and any other compromised accounts)
Choose a secure and unique password, and enable two-factor authentication (2FA) on your account. You should also consider using a password manager to keep all of your accounts safe.
Look For the Warning Signs of Identity Theft
Scammers can do serious damage if they gain access to your personal information. If your identity has also been compromised as part of the scam, follow the steps outlined in our identity theft recovery guide. For the most secure protection, consider an identity theft protection service like Aura.
What Are the Most Common Venmo Scams?
There are many forms of Venmo scams, and some potential scammers will be easier to identify than others. Often, the scammers will give themselves away, and we will realize that they are not being honest and need to walk away from the transaction if we become suspicious.
As time goes on, scammers on Venmo also adapt their schemes, but if you see the warning signs of any of these Venmo scams, then be cautious.
1. Mistake Money Transfers
From the surface, you might think that this "mistake" money transfer is harmless. A scammer sends you money on Venmo and then sends you a message claiming that it was a mistake and ask for a refund.
The real truth is that, scammers send you money with a stolen credit card, and then before you refund them, they update their Venmo account with their own banking details. As a result, you refund them and not the stolen credit card.
Now when the real credit card owner reverses the charge, Venmo takes the money from your account, since they do not offer any built in protections.
The best thing to do in this type of situation is to ignore any unexpected transfers, especially if the sender demands you to refund the money.
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| Image from Aura |
2. Fake Friends Requesting Help
Nowadays, Con artist have put in place some classic impersonator scams to Venmo. Here, Fraudsters change their profile picture and information so as to impersonate someone that you know quite well. Then they now message you demanding money for an "urgent' matter - like paying for medical treatment, lawyer fees, or something similar.
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| Source: Venmo |
Scammers can learn enough about you from your social network profiles, public Venmo transactions, and internet footprint to persuade you to transfer them money.
Scammers may occasionally even access your friend's phone or account and use that legitimate profile to make a money request. But the scammer receives the money instead of a buddy.
READ ALSO: Can You Get Scammed on Cash App Sugar Daddy?.
3. Scammers Selling Hard to Find Items
Looking for hard to find items like popular gaming consoles or concert tickets can be quite challenging and frustrating. Since it is not easy to find these items, you might some times be tempted to buy them from a stranger rather than getting it at the official online store.
Unfortunately, Venmo do not offer its customers any type of fraud protection in case things go wrong.
In these Venmo scams, fraudsters post in-demand products on platforms like Facebook Marketplace. When you reach out, they’ll insist that you use Venmo to make the purchase so they won’t have to pay a fee. But once you send them the money, the “seller” disappears along with the product that you thought you’d purchased.
Another variation of this scam involves a buyer sending you an email that appears to be a Venmo payment. These emails frequently assert that Venmo is withholding the funds until you upload the shipping details for the item. However, Venmo does not offer this option, and the entire email is a hoax.
Be warned that selling products online may expose you to similar scams as well.
In order to purchase your item, a fraudster will load their Venmo account with a credit card that was stolen. But once you send it out, the fraud will be uncovered, and you'll have to make up the money that was taken, depriving you of both the money and the thing you were trying to sell.
4. Fake Emails and Texts Claiming to be From Venmo - Phishing Attacks
This is a popular type of scam whereby, you are being sent emails from scammer claiming to be from legitimate businesses, including Venmo.
The scammer will take time to replicate as many details of an actual Venmo email as they can, such as Venmo's colors, logo, and even a similar domain name which might not be easy to differentiated if not regarded properly.
This email will request that you click on a link and verify your personal and financial information (which the scammers can use for identity or fraud).
Scammers will also use social engineering tactics to pressure you into acting quickly. For example, one scam message may claim that your Venmo accounts will be charged if you don’t click on the link in the text.
5. "Money Circle" Investment Scams
On Venmo, con artists use well-known "get rich quick" techniques to attempt to take your money. In this con, a con artist, who could be a stranger or someone you know, requests that you transfer them a modest sum of money via Venmo in exchange for a greater sum later (often after you invite more people to the "circle").
Unfortunately, you lose your initial investment because the money never materializes.
With gift cards, this money-circle swindle takes on a different form. You send the con artist a little sum of money in exchange for a gift card. The con artist then promises to send you a gift card that is significantly greater. But you never get it.
Final Thoughts on How to Get Money Back From Venmo If Scammed
Money transfer apps has fast become part of many people's daily life since its let them easily catch up with their transactions even from home. Venmo, PayPal, Cash App and Apple Pay are some of the most well known online money transfer apps around the world.
Did you know that peer-to-peer payment apps like Venmo, Cash App, and Zelle have fraud rates three to four times higher than credit cards?
Venmo can be a convenient way of sending money to people you know. But when you use it for other purposes — like buying and selling items online — you put yourself at risk of scams.
Paying strangers will always be problematic because Venmo only allows us to transfer money between people we know. We can presumably request a refund if our bank information or a product we sold was misused in a fraud.
The platform, however, would be unable to recover the money if we had engaged in fraudulent behavior and sent it to a fraudster.
Frequently Asked Questions
Can I cancel a payment on Venmo?
Unfortunately, no. When you send funds on Venmo it automatically becomes available to the other person. Therefore, you can’t cancel a payment.
How long does it take to get a refund?
The time a refund is issued depends on the business or person you sent the payment to. Once the payment is refunded on the recipient’s end, it takes 1-5 business days for Venmo to send the payment back to you.
What do I do if I got scammed and sent money with Venmo?
If you were the victim of a scam contact Venmo’s support team using the instructions above.
How do I dispute a Venmo payment?
If you are made aware of a transaction using your Venmo account that you did not authorize, please send us a message through our contact form, email us at support@venmo.com, or chat with us in our mobile app.