How to Prevent Venmo Scams & What to Do If It Happens

Venmo has become a widely used platform for sending and receiving money. Its ease of use makes it a popular choice for splitting bills, reimbursing friends, or making payments to small businesses. This convenience also presents opportunities for fraudulent activities. Understanding the methods scammers employ and implementing robust protective measures are essential steps for any user.

Recognizing Common Venmo Scams

Scammers frequently employ various deceptive tactics to exploit Venmo users. Phishing scams are prevalent, where fraudsters send fake emails or text messages that appear to be from Venmo, often containing urgent warnings about account issues. These messages typically include links designed to steal login credentials or personal information if clicked. Users should be wary of any unsolicited communication demanding immediate action or requesting sensitive data.

Overpayment scams occur when a scammer sends more money than owed, then claims it was an accidental transfer and asks for the difference back, often requesting it be sent via a different app or method. The initial payment might later be reversed or revealed as fraudulent, leaving the victim out of pocket. Fake payment notifications are another common trick, where scammers send fabricated screenshots or emails to convince a user that a payment has been made for an item, prompting them to ship goods before any actual funds are received.

Imposter scams involve someone pretending to be a Venmo representative, a friend, or a family member to gain trust and extract money or account details. They might call or message claiming an issue with your account and ask for passwords or verification codes, which Venmo will never request. “Accidental” payment scams involve a stranger sending money, then claiming it was a mistake and asking for it back, often attempting to trick the recipient into sending real money before the original “mistaken” payment is reversed. Tech support scams involve fraudsters posing as technical support, claiming a virus or system error, then demanding payment or remote access to accounts.

Securing Your Venmo Account

Proactive measures within the Venmo application strengthen account security. Creating a strong, unique password that is not reused across other online services is important. Passwords should combine uppercase and lowercase letters, numbers, and symbols. Regularly updating this password, perhaps annually, is also recommended.

Enabling two-factor authentication (2FA) adds a layer of security by requiring a second form of verification beyond a password. This usually involves a code sent to your registered phone number or generated by an authenticator app, which must be entered to log in from new devices. Even if a scammer obtains your password, they cannot access the account without this second code.

Setting up a PIN or biometric authentication, such as fingerprint or Face ID, for app access provides another barrier against unauthorized use, especially if your mobile device is lost or stolen. This feature ensures an additional verification is required every time the app is opened or a transaction is initiated. Users can configure this setting within the app’s security preferences.

Privacy settings on Venmo determine who can view your transactions. By default, many Venmo transactions are public, allowing anyone to see payment notes, sender and recipient names, and timestamps. Changing your default privacy setting to “private” ensures future payments are visible only to you and the recipient. Reviewing and adjusting privacy for past transactions is also possible.

Regularly reviewing linked bank accounts and debit/credit cards helps ensure only authorized financial instruments are connected. Check the list of remembered devices in your security settings and remove any unfamiliar or unused devices.

Practicing Safe Venmo Transactions

Conducting transactions safely on Venmo requires careful attention. Always verify the recipient’s identity and Venmo username before sending money, as a slight misspelling can lead to funds being sent to the wrong person. Venmo payments are instant and cannot be easily reversed once sent, emphasizing the need for accuracy.

Understanding the distinction between “friends and family” payments and “goods and services” payments is important. “Friends and family” payments are for trusted individuals and generally do not offer purchase protection. If a dispute arises, Venmo typically will not mediate or refund the money. In contrast, “goods and services” payments are for commercial transactions. While they incur a fee for the seller (1.9% + $0.10), they may offer buyer and seller protection under Venmo’s Purchase Protection Program. Always use the “goods and services” option when buying or selling items with individuals you do not know well.

Avoid payments to unknown individuals or for items not yet received. Be cautious of requests for advance fees or payments for “prizes” or “winnings,” as these are often indicators of a scam. Venmo is primarily designed for transactions with trusted individuals or for small, informal commercial exchanges where goods or services are immediately received. Exercise caution when using QR codes for payments. Always ensure you are scanning the legitimate code of the intended recipient or merchant. Confirm the recipient’s name before authorizing the payment after scanning a QR code.

What to Do If Scammed

Immediate action is important if you suspect you have been scammed on Venmo. Contact Venmo support directly through the app or website as soon as possible. Within the Venmo app, navigate to “Me,” then “Settings,” and select “Get Help” or “Contact Us” to chat with an agent or find their contact information. Provide all relevant details, including transaction information, usernames, and any communication with the scammer.

Reporting the fraudulent transaction allows Venmo to investigate and potentially freeze the suspicious account. If linked bank accounts or credit cards were involved, contact your bank or credit card company without delay. They may be able to dispute unauthorized charges or secure your accounts.

Change your password for Venmo and any associated email accounts to prevent further unauthorized access. If you use the same password for multiple accounts, change them all immediately. Venmo generally does not offer purchase protection for “friends and family” payments, making fund recovery difficult unless the payment was unauthorized. For eligible “goods and services” payments, Venmo’s Purchase Protection Program may offer recourse. Consider reporting the incident to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov, as this helps authorities track and combat fraud.