Peer-to-peer payment apps make it easy to send money to friends, family and businesses. But that convenience can also give scammers another way to get your money.
Because peer-to-peer payments can be difficult to recover once they’re sent, it’s worth knowing some of the common scams to look out for.
Common peer-to-peer payment scams
Someone claiming to be your bank
You get a call saying there’s suspicious activity on your account. The caller tells you to send money to yourself, the bank or another account to “protect” your funds. It may sound convincing, but your bank will never ask you to transfer money to protect your account, especially through a peer-to-peer app.
A seller who never delivers
You find a great deal online and the seller asks you to pay through a P2P app. You send the money, but the item never shows up and the seller stops responding. When using P2P payments to buy something, make sure you know and trust who you’re paying.
An emergency or romance scam
Someone you meet online may spend weeks or months building a relationship with you before asking for money. They might suddenly have a medical emergency, need help getting home or face another urgent situation. If someone you’ve only met online asks you to send money through a P2P app, take a step back and make sure the situation is legitimate.
A fake job that asks you to send money
The scammer hires you for a remote job, sends you a digital or mobile check to deposit for home office equipment, and asks you to pay a specific “vendor” using a P2P app. The check eventually bounces, leaving you responsible for the entire funds you sent out.
A payment sent “by mistake”
Someone tells you they accidentally sent money to your account and asks you to send it back. Rather than sending a new payment, contact the P2P provider and let them help resolve the situation.
Someone asking to use your phone
A stranger approaches with an emergency and asks to borrow your phone for a quick call. If you hand it over, they may try to access payment apps or financial accounts and send money without your knowledge. Keep your phone and financial apps protected, and don’t let someone you don’t know use your device.
Before you send a payment:
- Double-check the recipient’s name, phone number or email address.
- Only send money to people and businesses you know and trust.
- Be cautious if someone creates a sense of urgency or asks you to send money to “fix” a problem.
- If something doesn’t feel right, stop and contact your bank or the payment provider directly.
If you think you’ve been scammed
- Contact the peer-to-peer payment provider as soon as possible to report the transaction.
- If your bank account, debit card or other financial information was involved, contact your bank right away.
- Save screenshots, transaction details and messages, and consider reporting the scam to the FTC and local law enforcement.
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