Payment apps are convenient, but they also come with risks of scams. In 2022, 13% of U.S. adults fell victim to payment-app fraud. The FTC received 90,571 reports of payment-app fraud in 2024, double the previous year. Unlike credit cards or bank accounts, payment apps offer little protection against scams (1, 3, 4).

Consumer Reports found that major payment apps like Zelle, Venmo, Cash App, and Apple Cash do not fully reimburse users tricked into authorizing payments to scammers. Protection for money held in payment apps isn’t guaranteed if the company fails. Funds sent through Zelle are covered, but other apps require extra steps for protection (5, 6, 7).

Scammers use various tactics to trick users into sending money through payment apps, such as urgent requests from impersonating friends or sellers. Once you hit “send,” the money is usually gone. Protect yourself by only sending money to trusted sources, verifying requests, and using credit cards for purchases (8).

Recognizing and avoiding scammers is key when using payment apps. Treat them like cash, don’t be rushed into sending money, double-check recipient details, and report suspicious activity promptly. Utilize security features like strong passwords and multi-factor authentication to protect your accounts (9).

Read more at Yahoo Finance: Payment app scams are on the rise and once you hit send, you’re unlikely to get your cash back. How to protect yourself