Cybersecurity: Peer-to-Peer Payment Scams Explained

Peer-to-peer payment apps like Venmo, Cash App, and Zelle make it easy to split bills and pay rent. But scammers love them too! People lose money to fraud on these platforms each day—money that is nearly impossible to get back. The good news? Most payment app scams follow similar patterns. So, once you know what to look for, you can avoid fraud and protect your funds. Let’s take a closer look at payment app scams to improve your financial safety.

Mobile Payment App Scams Explained

Payment app fraud happens when someone tricks you into sending funds through peer-to-peer payment apps (P2P) like Venmo, Zelle, Cash App, or PayPal. These scammers are creative, and they usually impersonate trusted contacts or organizations, such as:

• A family member in an emergency who needs cash immediately
• Your bank calling about “suspicious activity” on your account
• A romantic interest you met online who suddenly needs financial help
• Someone selling concert tickets, rental properties, or even puppies that don’t exist
• A buyer who “accidentally” overpays and wants the extra money back

What makes these scams so effective? Payment apps work like cash. Once you hit send, that money is usually gone. Unlike credit card purchases, there's no buyer protection or middleman. Plus, your bank typically can’t reverse the transaction because YOU WILLINGLY authorized the payment. And legally, financial institutions aren’t allowed to retrieve funds from another person’s account without their permission—even if they are a scammer.

How Do I Know If a Payment App Request is a Scam?

Cybercriminals deliberately create confusion to cloud your judgement. Don’t let them fool you! Watch out for these warning signs of peer-to-peer payment scams:

• Pressure to Act Fast: Real payment emergencies are rare. If anyone claims your account will be closed unless you pay within the hour—or even says your grandson needs bail from jail—take a breather. It’s probably a scam.
• Requests from Strangers: Never transfer funds to someone you have only spoken to online, even if you have been chatting for weeks. That person will disappear after you pay them.
• Stories That Don’t Add Up: Did someone send you money “by mistake” and wants you to return it? It could be a scam using a stolen credit card. And when the real card owner reports the fraud, you’ll lose both original and returned payments.
• Odd Payment Requests: Always remember, your actual bank will never ask you to send money to yourself, and they won’t tell you to move funds to a “safe account” through Venmo or Zelle. The same goes for the IRS, Social Security Administration, and your electric company—none of them accept payments through these apps.
• Too Good to Be True Deals: If someone is offering a luxury apartment for a very low price or a purebred puppy at half the cost, pause before you pay. If it seems too good to be true, it probably is!

What Should I Do If I Fall for a Payment App Scam

When you realize you have been scammed, responding quickly makes a big difference. Here’s what you should do:

• STEP 1 — Contact the Payment App: The first thing you should do is report the transaction as fraud through the specific app. While your funds might not be recovered, reporting the scam helps them improve fraud prevention systems and update security measures.
• STEP 2 — Notify Academy Bank: Your financial institution needs to know if the scammer has your account information! Report fraud to Academy Bank by logging into Digital Banking and send us a secure message. You can also call Client Care at 877-712-2265 (Monday - Friday, 8 AM - 7PM, Central) or even swing by one of our local bank locations.
• STEP 3 — File a Police Report: Even though local law enforcement might not be able to track down the scammer, having a police report creates an official record.

• STEP 4 — Report to the FTC: Visit reportfraud.ftc.gov to file a complaint to the Federal Trade Commission. This helps authorities track scam patterns and protect others from becoming victims.

• STEP 5 — Warn Others: If a cybercriminal pretends to be a family member or friend, let your loved one know that their identity has been compromised.

Scams happen, even to careful people. Just remember to respond quickly, learn from the experience, and tell others so they can protect themselves!

 

CYERSECURITY RESOURCES:
FRAUD PREVENTION: Scams & Fraud; Prevent ID Theft; Report ID Theft; Fraud Alerts & Freezes; Mobile Security Tips; Visa Card Security.

SCAM-SPECIFIC RESOURCES: Most Common Scams of 2025; Smart Checking Account Practices; Spoofing Attacks; Package Delivery Scam Text Messages; Mail Theft & Check Washing; Investment in Crypto Scams; Phone Scams; Email Phishing Attacks; Text Message Scams; Phone Upgrade Security; SIM Swapping Scams; Payday Loan Scams; Business Fraud; Holiday Fraud Prevention; Pig-Butchering Fraud; Elder Financial Abuse; Tax Season Security.