Thursday, August 11, 2022

MOBILE PAYMENT APPS – Avoiding Mobile Payment Scams

Mobile apps such as PayPal, Zelle, Venmo, etc. have become an easy way to make and receive payments. And scammers have found numerous ways to try to fool you into sending them money or giving them your account information.

A recent Reader’s Digest article has identified 10 mobile app scams that include order confirmation, fake fraud alerts, password reset requests, promotional offers, refund requests, overpayment scams, and more.

Many of these scams are simply phishing or smishing scams that pretend to be from the payment app provider and ask you to click on a link to “confirm” your information or fix an alleged problem. The problem is that the link may take you to a website that looks like a legitimate website but is run by the scammers to collect your account information so that they can use your account for their own purposes.

Other scams, such as fake charity or overpayment scams, try to get you to send the scammer money. With a fake charity scam, the scammer will pretend to be an established charity, or a charity formed to help victims of a disaster, such as the flooding in eastern Kentucky, to solicit “donations” for the cause. The money does not go to help but goes into the scammer’s pocket. With an overpayment scam, you might have sold something to someone who turns out to be a scammer. They overpay with a fake or stolen credit card. Then contact you and ask for the overpaid balance, usually to a different account. Then they cancel the transaction with PayPal or Zelle leaving you out of your product and your money.

Some things you can do to prevent getting caught up in a payment scam include:

·         Protect your account with 2 factor authentication, 2FA, (multifactor authentication, MFA). 2FA/MFA is being recommended by more and more cyber security professionals because this technique protects your accounts from being hijacked by someone who should not have access to your accounts.

·         Use strong passwords of 12 characters or more on your accounts.

·         Be leery of certain requests or demands such as a “requirement” to make a payment to claim a prize or collect a sweepstake winnings or a “financial institution” having you transfer your funds from one account to another account to prevent fraud. Scammers sometimes demand actions that normally are not needed to take, often requiring some sort of payment. For example, if you have won a sweepstakes, your do not need to pay anything to the people running the sweepstakes. And “transferring” money only allows it to be deposited into the scammers bank account.

·         If you receive an email or a text message requesting money, don’t click on any links. If you want to see a website of the organization, or you want to call an individual who sent the email/text find their contact information through a web search.

Payment apps provide a new level of convenience. With some precautions, you can use them with confidence.

 

Reader’s Digest:

https://www.rd.com/article/paypal-scams/

 

Federal Trade Commission:

https://consumer.ftc.gov/articles/mobile-payment-apps-how-avoid-scam-when-you-use-one#avoid%20sending%20money%20to%20scammer

https://consumer.ftc.gov/consumer-alerts/2020/02/making-mobile-payments-protect-yourself-scams

 

Identity Theft Resource Center:

https://www.idtheftcenter.org/post/new-zelle-scam-uses-crafty-methods-gets-criminals-into-bank-account/

 

The following links to AARP tells the story of how a scammer defrauded a individual out of her savings through a Zelle scam.

AARP:

https://www.aarp.org/podcasts/the-perfect-scam/info-2022/zelle-scam.html

https://www.aarp.org/podcasts/the-perfect-scam/info-2022/zelle-scam-part-2.html

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