Peer-to-peer payments, or P2P payments, allow consumers to transfer money using their bank accounts, debit cards, or credit cards through a website or mobile app such as Cash App, Google Pay, Venmo, and Zelle. It’s like sending cash and the transfer usually requires just a few clicks. P2P payment services can be easy to set up, simple to use, and are generally secure, but it’s important to be aware that criminals may try to scam you into sending money.
What is a Peer to Peer (P2P) Scam: A P2P scam is when the sender authorized a payment that was induced by, initiated, or sent because of an unfair or deceptive act or practice by the recipient. An example may be a scammer posing as a legitimate business that requests a P2P payment for a product or service. Once they receive your money, you never receive what you paid for, and they disappear.
Protect Yourself:
- Do not P2P someone you do not know personally. Do not accept a transaction from someone you do not know.
- When paying for services or products, treat P2P as cash. Receive the service or product before paying.
- Once the receiver accepts the transaction, the money is gone. The bank cannot recover any lost funds transferred through P2P and is not responsible for them.
- Double check the name/phone number attached to the account you are sending the money to.
- Double check the amount you are sending.
- Keep your P2P payment app up to date so it is secure.
- Set up alerts to notify you of any transaction on your P2P account.
- Enable multi-factor authentication – a step to verify who you are, like a text with a code – for all accounts and do not share the verification codes with anyone, including anyone claiming to be the bank.
- When reporting fraud to the P2P platform, do not provide sensitive information over the phone.
