VENMO Scam

[BrianL99]

May be of interest for those who use VENMO (70,000,000 people)..

VENMO recently added a "Button" when you send money to someone, which offers you "Protection for this Transaction" ... at no cost to the Sender. They charge the Recipient, 1.9% + 10¢. I got charged $12 when my ex-wife transferred money to me.

Be careful. This Option can be triggered by what you write in the "Notes" section. The notes are evaluated by a algorithm and automatically activate the Fee.

[tophcfa]

All this electronic crap is very dangerous. Cash is king and credit cards offer protection for card holders from fraud. That’s all we use.

[EdFNJ]

It's not really a "scam" it's an enforcement of their terms. Since it just started I guess they could have made a few errors but more likely it's people avoiding their fees or PayPal fees. Venmo (owned by PayPal) is only supposed to be used for non-business P to P transactions (like PayPal send money to a "friend"). Any sales of "stuff" (goods & services) are considered commercial and charged the commercial fee. PayPal does the same. Their TOS says it's only for P to P payments. Those who are actually being paid for anything are being charged the fee. People who are dumb enough to ignore the TOS and put in the "comments" something like "for an iPhone 6" are being charged fees. If they simply had put "here's the $50 I owe you for lunch, or "repayment of your loan" there would be no problem. Lots of commercial companies have been getting away with it for years. I guess they are finally cracking down. Kind of like Netflix and password sharing.

https://www.androidpolice.com/2021/06/23/venmo-is-introducing-new-fees-and-youre-not-going-to-like-them/

At the moment Venmo users who have identified themselves as a business have to pay a 1.9% + 10 cents transfer fee for any money sent to them. Starting on July 20th, all users will have to pay this fee when receiving money for goods or services, whether or not their account is identified as a business. That's according to an email sent to Venmo users yesterday.

[VApeople]

All this electronic crap is very dangerous. Cash is king and credit cards offer protection for card holders from fraud. That’s all we use.

I totally agree with you. We always pay cash at restaurants but we use a credit card for groceries and gasoline.

[EdFNJ]

All this electronic crap is very dangerous. Cash is king and credit cards offer protection for card holders from fraud. That’s all we use.

I totally agree with you. We always pay cash at restaurants but we use a credit card for groceries and gasoline.

This has nothing to do with credit cards or gas stations or restaurants. The advantage to Venmo, PayPal, Zelle and others is if for example you want to send your grandkids or friend money you can do it for free in instantly. You can't do that with a credit card and if you want to send cash through the mail, good luck or a check would take days. Nothing is foolproof. The world is changing. You just have to be careful and not fearful of technology.

[villagetinker]

The downside of some of these systems is that you (the sender) have NO protection if the payment is part of a scam, or if someone managed to access your account and send funds. At least with credit cards there is some protection. I had someone ask me to setup Zelle, and when doing me due diligence I found there is no protection for incorrect or scam payments, needless to say I do not use Zelle.

[EdFNJ]

The downside of some of these systems is that you (the sender) have NO protection if the payment is part of a scam, or if someone managed to access your account and send funds. At least with credit cards there is some protection. I had someone ask me to setup Zelle, and when doing me due diligence I found there is no protection for incorrect or scam payments, needless to say I do not use Zelle. That goes for anything. Stolen credit card numbers etc. Anyone who gets their account login stolen needs to use one of the many ways to protect their account info available.

Zelle is sent through one's own bank account and the account owner is sending it. If someone else can access that they have more problems than Zelle scams. You certainly shouldn't be sending Zelle payments to anyone you don't know and should confirm directly from them they are who they say they are. Would you leave a wad of cash on a desk for someone to come buy and pick up later in the day. Of course not. Like anything else in the world people need to be careful what they do. MOST of the issues with Zelle, PayPal, Venmo etc are all related to users not being fully aware of what they are doing. I'd bet the anount of actual scams is infinitesimal. Only the bad stuff gets posted in articles or online.

Edit: And the BEST protection is to have a totally separate bank account just for those types of things, and just transfer or keep what you need in it.

[tophcfa]

That goes for anything. Stolen credit card numbers etc. Anyone who gets their account login stolen needs to use one of the many ways to protect their account info available.

Zelle is sent through one's own bank account and you are sending it. If someone can access that you have more problems than Zelle scams. You certainly shouldn't be sending Zelle payments to anyone you don't know and should confirm directly from them they are who they say they are. Would you leave a wad of cash on a desk for someone to come buy and pick up later in the day. Of course not. Like anything else in the world people need to be careful what they do. MOST of the issues with Zelle, PayPal, Venmo etc are all related to users not being fully aware of what they are doing.

All I know is that with all those electronic payment methods some faceless wimp can remotely steal your hard earned money from you from behind a keyboard while sitting in a chair in some third world country. If someone wants to steal my cash, they will have to physically confront me, kill me, and pry it from my cold dead hands. Cash is king!

[EdFNJ]

All I know is that with all those electronic payment methods some faceless wimp can remotely steal your hard earned money from you from behind a keyboard while sitting in a chair in some third world country. If someone wants to steal my cash, they will have to physically confront me, kill me, and pry it from my cold dead hands. Cash is king! So were phone booths and 8 track tapes! It might be king but it's hard to push it through your bank or a cellphone to friends or family. :D I would assume you don't shop online or use credit cards or ever send a check because those same folks can get to those things also. I keep a $5 bill stuffed inside my cell phone case for bail money if I need it but haven't used cash in probably in forever, especially with all the cash rebate credit cards.

[tophcfa]

So were phone booths and 8 track tapes! It might be king but it's hard to push it through your bank or a cellphone to friends or family. :D I would assume you don't shop online or use credit cards or ever send a check because those same folks can get to those things also. I keep a $5 bill stuffed inside my cell phone case for bail money if I need it but haven't used cash in probably in forever, especially with all the cash rebate credit cards.

In addition to cash, I’ll use a credit card. The bank that issued the card will not charge me for fraudulent use and offers either cash rewards or points toward air travel. My bills are on autopay from my cash rewards card, with physical statements sent to me in the real mail so I can save them in the appropriate file. As far as all the other electronic forms of payment, I guess we agree to disagree. The only thing I push through my cell phone is a phone call or the occasional text (if I have my cheaters handy). To each his or her own.

[Dusty_Star]

This has nothing to do with credit cards or gas stations or restaurants. The advantage to Venmo, PayPal, Zelle and others is if for example you want to send your grandkids or friend money you can do it for free in instantly. You can't do that with a credit card and if you want to send cash through the mail, good luck or a check would take days. Nothing is foolproof. The world is changing. You just have to be careful and not fearful of technology. I would add it is helpful if you read a bit about the new service & learn its advantages & limitations. That way you can make an informed decision. Just jumping in and making assumptions is how people run into problems. (By reading I mean some of the tech articles which pop up like mushrooms when something new debuts. The Terms of Service are impenetrable legalese & useless for regular folks).

[Caymus]

FWIW, Consumer Advocates like Clark Howard do not like these services. His main issue is the lack of customer protections. A standard checking account has much more safeguards.

[BobnBev]

I've never heard of venmo or zelle.

[Topspinmo]

May be of interest for those who use VENMO (70,000,000 people)..

VENMO recently added a "Button" when you send money to someone, which offers you "Protection for this Transaction" ... at no cost to the Sender. They charge the Recipient, 1.9% + 10¢. I got charged $12 when my ex-wife transferred money to me.

Be careful. This Option can be triggered by what you write in the "Notes" section. The notes are evaluated by a algorithm and automatically activate the Fee.


I gotta ask???? How did you get ex wife to send you money?:confused:

[EdFNJ]

I've never heard of venmo or zelle. There's also CashApp :) Your bank likely has Zelle under "transfers." Check it out. Most all now do. Venmo is owned by PayPal and is their peer to peer money transfer system for PERSONAL transactions which is their answer to Cash-App. :) Then there's Apple Cash (not the same as Apple PAY), Samsung Pay, Google Pay, Android Pay and maybe a couple others I missed all pretty much do the same, allows you to instantly send cash to family and friends between bank accounts. Despite the fears of many, they are quite safe but like anything in the world they can be abused if one is careless or gullible. .

Top Peer-to-Peer Payment Apps: Pros and Cons - NerdWallet (https://www.nerdwallet.com/article/banking/peer-to-peer-p2p-money-transfers)

[EdFNJ]

FWIW, Consumer Advocates like Clark Howard do not like these services. His main issue is the lack of customer protections. A standard checking account has much more safeguards. Of course True, and handing someone cash in person has even more safeguards. ;)

Checks don't serve the same purpose as the payment methods being discussed, it's Apples and Peaches.. The purpose of these payment methods get cash to someone in seconds not days or weeks like a check takes. I have probably written 10 checks in the last 15-20 years. My remaining checks (and account numbers which never changed ) are from probably from over 15 years ago when Union Center National Bank got bought by City Federal who got bought by First Union who got bought by Wells fargo (probably missed a couple in between).

"Clark Howard" actually has very LITTLE bad to say about Zelle and the others other than to keep a separate checking account and watch out for obvious fraud. Doesn't the fact seniors get sucked into the bad stuff more than others tell you something? Can't blame the SERVICE for that. One needs to take responsibility for what they do wrong.

Howard says: Fraudsters are actively trying to exploit Zelle and other payment apps, so Clark advises using it only when transacting with a person you know. [DUhhhh!!!]

In fact, on the Zelle website, it says, “You can send money to almost anyone you know and trust with a bank account in the U.S.” The “almost anyone” part means that Zelle intends this app to be used only by close associates.


Exactly. If some Nigerian Prince asks you to send him $1000 by Zelle to free your little grandson from the head hunters of southern Monrovia one has to CAREFULLY think about it before sending.

[Luggage]

Venmo has few real protections, is not federally regulated like credit cards. PayPal is much better at Fraud and scams . And better yet if someone needs money the next day or two send them a check express mail.

[Mistymom]

I have never used any of these services myself for sending money because of an experience with a friend. She carelessly didn't "close" her transaction when she sent money to her grandson. Apparently, someone in a foreign country was able to monitor "open" accounts and they cleared out not only her checking account, but her linked savings account! I have always been concerned about hackers and this is why I don't have my checking and money market accounts linked for automatic overdrawn coverage.

Also, when I had a yard sale and also sold furniture, people asked if I would accept Zelle or other forms of electronic payments and I wouldn't because I didn't know them. A person going to a yard sale should come prepared with cash and someone purchasing furniture can swing by their ATM.

[thevillages2013]

I gotta ask???? How did you get ex wife to send you money?:confused:

Maybe he can coach us up on that concept! I would like to know how he pulls that off. :popcorn:

[JeanC]

May be of interest for those who use VENMO (70,000,000 people)..

VENMO recently added a "Button" when you send money to someone, which offers you "Protection for this Transaction" ... at no cost to the Sender. They charge the Recipient, 1.9% + 10¢. I got charged $12 when my ex-wife transferred money to me.

Be careful. This Option can be triggered by what you write in the "Notes" section. The notes are evaluated by a algorithm and automatically activate the Fee.

We use venmo a lot to split bills, send money to young adult kids, etc. if we send to a new recipient, we always send $1 first to make sure we have the correct person, then we will send the correct amount.

[maggie1]

This has nothing to do with credit cards or gas stations or restaurants. The advantage to Venmo, PayPal, Zelle and others is if for example you want to send your grandkids or friend money you can do it for free in instantly. You can't do that with a credit card and if you want to send cash through the mail, good luck or a check would take days. Nothing is foolproof. The world is changing. You just have to be careful and not fearful of technology.

After reading this response, I had to ask myself "When was the last time that I needed to send my friends or grandkids money where a check wouldn't suffice?" Nope, can't think of one. Your comment that nothing is foolproof can't be more spot on. Unfortunately, we've had several people in TV who have been taken by people calling or sending an email, claiming to be from Amazon or sheriff's office, and yes, even someone posing as the person's grandchild and that they needed money to pay a bill, bail, or a fine. Then you know how this turns out, don't you? The person is out hundreds if not thousands because time to get this transaction taken care of was of the essence, which is where Venmo, PayPal, and Zelle comes into play. Once the person discovers they've been scammed, can they be reimbursed by any of the three? Good luck with that. I don't fear technology, but I can see where it can become harmful to some gullible ancient agers who are only wanting to do the right thing.

[jimbomaybe]

All this electronic crap is very dangerous. Cash is king and credit cards offer protection for card holders from fraud. That’s all we use.
Good thinking, never carry a balance, the interest rates they charge are brutal, they give you a float on the payment , keep records for you and give you more leverage to deal with the seller if there is a problem and most C/C companies will give you a small amount back, do this with a no fee card and have all the benefits paid for by those who carry a balance, win win situation , but as you say it can be dangerous have things set up so you are notified of any charges

[Indydealmaker]

I totally agree with you. We always pay cash at restaurants but we use a credit card for groceries and gasoline.

If you tip in cash, do you give it to your server in person?

[EdFNJ]

After reading this response, I had to ask myself "When was the last time that I needed to send my friends or grandkids money where a check wouldn't suffice?" Nope, can't think of one. Your comment that nothing is foolproof can't be more spot on. Unfortunately, we've had several people in TV who have been taken by people calling or sending an email, claiming to be from Amazon or sheriff's office, and yes, even someone posing as the person's grandchild and that they needed money to pay a bill, bail, or a fine. Then you know how this turns out, don't you? The person is out hundreds if not thousands because time to get this transaction taken care of was of the essence, which is where Venmo, PayPal, and Zelle comes into play. Once the person discovers they've been scammed, can they be reimbursed by any of the three? Good luck with that. I don't fear technology, but I can see where it can become harmful to some gullible ancient agers who are only wanting to do the right thing. When people do dumb things with ANYTHING they can get screwed. One person's lack of knowledge or gullibility is only their own fault for falling for a scam. OBVIOUSLY those "types" of folks who are so susceptible to falling for those scams have only themselves to blame but no one wants to admit THEY SCREWED UP so therefor they got scammed. For every person you "know" who has been scammed, there are probably 10,000,000 who have not been. Those scams you listed have been around for 20 years and discussed over and over ad naseum on TV, in newspapers (even the Daily Happy News had it) as well as in letters from AARP!. Sorry, people need to take responsibility for their own lack of knowledge. Some folks (Gullible Ancient Agers you mention) shouldn't be allowed to have ANYTHING BUT a checking account or in many cases not even a key to a car. Age isn't an excuse. My late 93yr old father used all those tools and never was scammed. Age isn't an excuse for getting scammed. LACK OF KNOWLEDGE is.

As for sending grandkids money, we do it often (as did my Father). Checks are so 1990's. Our granddaughter was on a cross country car tour with a friend to visit dozens of national parks. We wanted to send her some gas money and she had it in seconds. Sure we could have bought a prepaid credit card and mailed it to her if we knew where she would have been on any day but there was no mail at campsites in Yosemite or Grand Teton or ontop of Pikes Peak. :) If one feels uneasy with modern technology then by all means stay away from it and also stay off of Facebook and the rest.

[Haggar]

I totally agree with you. We always pay cash at restaurants but we use a credit card for groceries and gasoline.

I never pay cash unless the purchase is under $5. I currently get 5% rebate on restaurants, 4% on gas, 3% on some items and 2% on everything else. All no fee cards.
With inflation why not get all the rebates you can?

On another point, I use zelle for receiving payments in my business and for both sending and receiving payments personally but only to people I know. The clients send zelle payments to my business email address so they don't have my bank account info. I do not accept credit cards in the business.

Most clients love zelle because they don't have to mail anything anymore.

[Bay Kid]

I gotta ask???? How did you get ex wife to send you money?:confused:

Never worked with my X and if she did she would figure how to charge me something for doing that.:shrug:

[mikeycereal]

claiming to be from Amazon or sheriff's office, and yes, even someone posing as the person's grandchild and that they needed money to pay a bill, bail, or a fine.

A few years ago my dad told us a story about the call he got for the grandson needing bail from a foreign country scam. Immediately he was skeptical and asked "which grandson?" the scammer's reply was "Your favorite one." Yeah right he thought and ended the call. People just need to ask questions and figure it out before hurrying to send money to these scammers. Easy to say, but don't become a victim.