Greg's Corner

Beware of the ‘accidental’ money transfer scam on Venmo

By Greg Collier

You receive a notification from Venmo that someone has accidentally sent you money and is now asking for it back. It’s only natural to feel inclined to return the money immediately. However, Michigan’s Attorney General recently issued a critical warning to Venmo users about this scam, urging everyone to think twice before sending the money back.

Scammers have become increasingly sophisticated in their methods. The current scheme involves using stolen credit cards to send money to unsuspecting Venmo users. Once the money is sent, the scammer quickly contacts the recipient, claiming the transfer was an accident and requesting the money to be sent back. The recipient, thinking they are helping correct an honest mistake, returns the funds.

The catch? When Venmo eventually discovers that the original transaction came from a stolen credit card, they reverse the transaction, taking the money from the recipient’s account. Meanwhile, the scammer walks away with the money sent back, leaving the recipient at a financial loss.

It’s crucial to exercise caution with any unexpected transaction, especially from someone you do not know. Here are a few tips to protect yourself from falling victim to this scam.

Take a moment to think before responding to unexpected money transfers. Scammers often rely on a sense of urgency to trick their targets. If you receive money unexpectedly, reach out to Venmo’s support team to verify the legitimacy of the transaction. Avoid direct communication with the sender until you have confirmed everything. Regularly review your Venmo transactions to spot any unusual activity.

If you suspect you are a victim of a scam or notice anything suspicious, report it to Venmo and your local authorities immediately.

This scam is a reminder of the importance of caution in online transactions. If you find yourself in this situation, pause, verify, and report if necessary. Protecting your financial information should always be a top priority.

Venmo is designed primarily for transactions between family and friends, making it a convenient tool for splitting bills, sharing expenses, and sending money to people you know and trust. Using Venmo for transactions with unknown parties can increase the risk of fraud and scams, as the platform lacks the same protections offered by services specifically built for business transactions. Always ensure that you are sending or receiving money from trusted individuals to maintain the security of your financial information.