Can You Get Scammed on Venmo? Yes, Here‘s What To Know

Venmo is used by over 70 million people to send payments to friends or pay for goods and services online. The app makes it incredibly easy to quickly transfer money from your smartphone.

But Venmo’s seamless functionality also makes it enticing for scammers. Losses from Venmo scams totaled $80 million in 2021, showing how serious of an issue fraud has become on the platform.

While Venmo employs various security measures, holes still exist that scammers exploit to rip off users. By understanding common Venmo scams, learning to spot red flags, and taking steps to protect yourself, you can steer clear of trouble.

I’ve worked in cybersecurity for over a decade, specializing in data protections for mobile banking and financial apps. In this guide, I’ll share expert insights on how to keep your money and information safe when using Venmo.

How Widespread Are Venmo Scams?

Venmo scams are rampant, according to data from the Federal Trade Commission:

• 56,000 – Reports of Venmo scams were filed to the FTC in 2021 alone.

• $80 million – Total reported losses from Venmo scams in 2021.

• 18 to 29 – Ages of those most susceptible to Venmo scams.

The most common Venmo scams reported are:

• Online shopping scams – 43%
• Advance fee loan scams – 14%
• Romance scams – 10%

With the ease and popularity of Venmo, it’s crucial to understand Venmo scams exist and how to avoid falling victim.

Is Venmo Safe To Use?

Venmo uses a variety of security protocols to protect user accounts and data, including:

• Encryption – Venmo employs bank-grade encryption and HTTPS security to safeguard financial information.

• Transaction reviews – Venmo has automated systems that regularly review account activity and money transfers to detect any suspicious or illegal behavior.

• Two-factor authentication – Users can enable two-factor authentication (2FA) to require an extra step beyond a password to log in. This prevents scammers from accessing your account even if they have your password.

However, Venmo has some limitations in protecting users from scams:

• No purchase protection – Unlike credit cards, Venmo offers no refunds for fraudulent purchases or payments.

• Irreversible payments – Once sent, Venmo payments cannot be canceled. Money is available instantly to receivers.

• Anonymous accounts – Scammers can easily create anonymous, untraceable accounts.

My take: Overall, Venmo employs adequate protections to secure accounts and transactions. But users should be aware of gaps like no purchase protection that do exist. Situational awareness around scams goes a long way in staying safe.

5 Common Venmo Scams To Know

While scammers are constantly adapting their tactics, some prevalent schemes on Venmo to be aware of include:

1. Fake Payment Scams

This involves the scammer sending you phony payment receipts, such as an email making it appear they sent you money for an item. After shipping the item, you learn the payment never happened.

How to avoid: Only rely on payment notifications from the official Venmo mobile app, not unverified emails.

2. Phishing Scams

Phishing uses fake Venmo emails or texts with links for you to “verify account information” or “confirm a deposit”. If clicked, you could unknowingly install malware or share login credentials with scammers.

How to avoid: Never click questionable links. Confirm weird messages through the Venmo app or website before taking action.

3. Fake Items for Sale

Scammers post in-demand items, like scarce PS5s or concert tickets, for sale online. They insist on upfront Venmo payment before delivering the item that never arrives.

How to avoid: Never pay upfront for expensive items being sold by unverified sellers online. Use buyer protection services like PayPal.

4. Pretending to Be Friends

You may get a Venmo request from what appears to be a friend’s account asking for cash urgently. But it’s actually a scammer that hacked your friend’s account.

How to avoid: Verify odd requests by contacting the sender via another method before sending money.

5. Fake Rewards or Prizes

Scammers send phony emails claiming you’ve won a Venmo cash prize or reward. The message states you need to click a link to claim the money, leading instead to a fake login page to steal account credentials.

How to avoid: Venmo never informs users about prizes by email. Ignore suspicious messages with links claiming you won money.

What To Do If You‘re Scammed on Venmo

If you encounter a Venmo scam, staying calm and taking quick action is key:

• Contact Venmo immediately – Report phishing scams to [email protected]. Forward suspicious texts to [email protected]. Provide as many details as possible.

• Call your bank – Alert your bank to any fraudulent Venmo charges so they can monitor accounts closely for further suspicious activity.

• Reset account password – Change your Venmo password immediately to prevent further unauthorized access. Avoid reusing passwords across accounts.

• Review account activity – Login to your Venmo account to review recent transactions for any unknown payments not made by you. Dispute those with Venmo.

• Use credit cards over debit cards – If you must link a card to Venmo, credit cards offer more robust fraud protections and may refund unauthorized Venmo payments. Debit cards provide fewer protections.

• Sign up for identity theft protection – Consider services like LifeLock or IDShield to monitor for misuse of your personal and financial information. They can also help resolve any identity theft that results from a scam.

The hard truth: Recovering lost money is very difficult. Once disbursed, Venmo payments are irreversible. Venmo itself cannot reverse payments or compel recipients to return scammed funds. Your only options are disputing charges with linked banks or cards or persuading recipients to willingly refund fraudulent payments.

Analyzing 6 Red Flags of Venmo Scams

Venmo scams can be hard to recognize at first. Here are 6 key warning signs I teach people to watch out for:

1. Generic Greetings

Scam emails tend to use impersonal openings like “Dear Venmo User” instead of addressing you by name.

2. Grammatical Errors

Poor grammar, misspellings, awkward phrasing signal an unsophisticated scam attempt.

3. Suspicious Links

Never click text or email links. Hover to preview URLs for legitimacy. Venmo doesn’t send account verification texts.

4. Strange Attachments

Delete emails with odd attachments that may be malware.

5. Sense of Urgency

Scammers create high-pressure situations hoping you’ll act quickly without checking validity.

6. Too Good To Be True

If it seems unrealistic, it probably is. Great deals out of the blue likely indicate a scam.

9 Expert Tips To Avoid Venmo Scams

Beyond just recognizing scams, here are 9 pro tips I recommend to anyone using Venmo:

1. Only transact with trusted users – Never send money to people you don‘t personally know well.

2. Review privacy settings – Adjust settings so your payments are not public for all to see.

3. Monitor your account closely – Log in frequently to check for any unauthorized transactions.

4. Never share personal information – Don‘t reveal Social Security Numbers, bank details, or login credentials.

5. Use complex unique passwords – Create passwords 12+ characters with special symbols, numbers, and capital letters. Enable two-factor authentication.

6. Think before clicking – Avoid opening links or attachments in questionable emails to prevent malware.

7. Beware red flags – Don‘t rush payments if anything seems suspicious. Pause and confirm validity.

8. Only use Venmo – Never pay unknown people using checks, wire transfers or gift cards which lack fraud protections.

9. Report issues ASAP – Alert Venmo support immediately if any concerns over account activity arise. The quicker, the better.

Bottom line: Venmo is generally safe if used cautiously. But you need to exercise common sense online and take actions to avoid being targeted.

Can You Recover Money Lost In a Venmo Scam?

The short answer is – it‘s very, very hard to recover funds lost through a Venmo scam.

Unlike credit card payments, Venmo transactions between users are designed to be immediate and irreversible. This means:

• Venmo itself cannot reverse payments on your behalf or compel recipients to return scammed money.

• Payments only get returned if the receiver voluntarily refunds them – which scammers obviously won‘t do.

• Your bank may be able to help if payments were made directly from linked bank accounts. But assistance is limited.

• If you linked a credit card, you have additional protections under the Fair Credit Billing Act. You can potentially dispute charges within 60 days of the transactions.

• Debit cards unfortunately don‘t offer the same level of fraud protections that credit cards do. Recovering lost Venmo payments made via debit cards is unlikely.

The reality: Once you hit send on that money transfer within Venmo, consider it gone for good. Your options are extremely limited for getting funds returned or reimbursed after falling victim to a scam.

That‘s why it‘s absolutely critical to confirm Venmo payments beforehand and deny any suspicious or unclear requests. Slow down and do your due diligence instead of hastily sending payments.

How To Report Scams to Venmo

If you encounter a scam, be sure to let Venmo know right away by:

• Email – Forward scam emails to [email protected]. Report other issues to [email protected].

• Online – File a scam report through Venmo’s Contact Support form or via live chat at help.venmo.com.

• Phone – Call 1-855-812-4430 to speak with a Venmo agent about scams or fraudulent activity.

• FTC – Additionally, you can file a complaint with the Federal Trade Commission on their website.

Provide as many details as possible including usernames, phone numbers, screenshots, and email addresses. Venmo relies on information from users to investigate scams and enhance security.

While Venmo may not recover your lost funds, reporting scams helps prevent the issue for other users.

Staying Safe on Venmo

Here are key tips to follow every time you use Venmo to avoid scams:

• Confirm legitimacy – Slow down and verify odd requests via another method before sending money.

• Know recipients – Only send funds to people you know and trust in real life. Never pay strangers.

• Monitor closely – Login frequently to check for unknown activity. Enable purchase notifications.

• Secure your account – Use unique complex passwords. Enable two-factor authentication.

• Link credit cards – For payments, credit cards offer more fraud protections than debit cards or bank accounts.

• Think before acting – Never rush into payments. Take extra time whenever anything seems strange or urgent.

• When in doubt, don‘t – Deny sketchy payment requests. Better safe than sorry applies perfectly to Venmo.

Exercising caution goes a long way in protecting yourself from the endless scams that exist on Venmo and other cash apps. If your gut tells you something seems suspicious, listen to it.

The Bottom Line on Venmo Scams

Venmo provides a convenient way to exchange money with friends and businesses. But that convenience also enables scammers to more easily target users.

Sophisticated fraudsters employ countless tactics to trick people into sending money within Venmo. If you do get scammed, recovering those lost funds is extremely rare.

That’s why learning to identify red flags, analyzing unusual activity, and denying questionable transactions is so important. With Venmo use skyrocketing, users must be vigilant in order to keep their money and information secure.

Apply healthy skepticism instead of haste when using Venmo. Your account and your finances will thank you. Don‘t learn these lessons the hard way.