Watch Out for Person-to-Person Payment Scams

Apr 15, 2024

Person-to-person (P2P) payment apps are becoming increasingly more popular as a way to send funds to people. Unfortunately, that also means that scams using P2P apps are also becoming more popular.

These scams often involve a stranger trying to trick the victim into thinking they are a trustworthy person, maybe even someone they know, and creating an emergency situation to try to obtain money as quickly as possible. P2P scams are often set up in three different ways:

1. Phishing scam: The scammer will try to pose as the P2P app itself by using a fake email or text message, in which there is a nefarious link for you to click on to reset your “suspended” account. If you follow the link, it could install malware to your device or take you to a fake page where you are asked for personal or login information, which the scammer can then use and steal money from you.

2. Unauthorized transfers: If someone happens to gain your information from some sort of phishing scam or otherwise, this could cause an unauthorized transfer. Check your accounts regularly to ensure that all transactions are authorized by you on your accounts. If you see something you don’t recognize, immediately contact your financial institution to put a hold on your account and to start an investigation into the fraudulent transaction.

3. Accidental payments: Some scams will try to pretend that they accidentally sent you too much money and for you to send some back. However, their payment will never clear, causing the money to bounce back – and they’ll also get the money that you sent, leaving you in the red. If this happens to you, contact the app directly to get them to investigate the issue and potentially resolve the issue or catch the scammer.

When used correctly and safely, P2P apps are secure ways to easily send and receive money. As with anything involving your hard-earned funds, taking steps to protect yourself is important. Here are some easy tips to make sure that you are staying safe:

· Never send or accept payments from a stranger. Always verify who you are sending money to or accepting money from. If you feel pressured to send money immediately, chances are it is a scam. Pause and take time to think and investigate if the situation is legitimate.

· Double-check all information. Is the amount, name and contact information all correct? Ensure that what you are sending and who you are sending it to is what you expected. Even when sending money to those you know, a misspelling of a name, email or number could happen.

· Make sure your app is up to date. Apps will update their security, so make sure that you are using the latest version. That way you’ll be secure knowing that all known bugs and potential issues are fixed as you’re using the app. It is much tricker for scammers to access information if you have all security features turned on as well, such as multi-factor authentication.

· Don’t give personal information. Never give your personal information out to someone you don’t know. Scammers will pretend to be legitimate companies or people you may know but will contact you from unrecognized sources. Always double check and contact people from a trustworthy number.

· Notify your financial institution immediately if you suspect fraud. If you receive an unrecognized payment or suspect you are a victim of fraud, contact your financial institution. Make sure to change passwords frequently and never share your information.

Remember to at least review your account statements monthly to check for any activity that you did not authorize. If you see something you don’t recognize, contact your financial institution to investigate. It’s always better to be safe!

Have questions about HPay? Contact us at 800-634-6632.