Lost money to a Venmo scammer? You’re not alone. In 2023, Americans lost over $5.8 billion to digital payment fraud, with peer-to-peer apps like Venmo becoming prime targets for scammers. These criminals are getting craftier, but you can outsmart them by learning their tactics.
Think of this guide as your personal fraud prevention toolkit. We’ll walk through the most common Venmo scams and show you exactly how to spot and avoid them. Whether you’re a daily Venmo user or just getting started, these tips could save you from becoming another fraud statistic.
The seven most common Venmo scams
There are hundreds of Venmo scams, but a handful seem to pop up more often than others. Below, we’ve explained the most common scams on Vemo and how to avoid them.
1. Fake payment notifications
One common scam involves receiving fake emails or text messages that appear to be from Venmo. These messages claim you’ve received a payment and may encourage you to click a link or send money back due to an overpayment or error. When you check your Venmo account, there’s no transaction record. Clicking the link will bring you to a fake login page or download malware onto your device.
How to avoid it: Always verify payment notifications by logging into the Venmo app or website directly. Avoid clicking on links in unsolicited emails or texts. If someone contacts you claiming they sent money by mistake and asks for a refund, check your transaction history before taking action. Remember, Venmo payments are instant, and genuine transactions will appear immediately in your account. For more information on recognizing phishing attempts, visit the Federal Trade Commission’s guide on phishing.
2. Overpayment scams: The $50 “mistake” that could cost you hundreds
Picture this: You’re selling your old phone for $200. A buyer sends you $250 and says, “Oops, my mistake! Could you send back the extra $50?” Sounds innocent enough, right? Wrong. This classic scam cost Americans over $75 million last year, and banks don’t always refund scammed money.
How the scam works:
- The scammer sends more than your asking price
- Begs for a quick refund of the difference
- Their original payment gets reversed (it was fraudulent)
- You lose both your item and the “refund” money
Real-life example: Mike listed his laptop for $800. A “buyer” sent $1,000 and requested a $200 refund. After Mike returned the difference, the original $1,000 payment disappeared – it was made with a stolen card—total loss: $1,000 plus his laptop.
How to protect yourself:
- Never refund overpayments, especially on pending transactions
- Cancel suspicious transactions completely
- Ask buyers to send the exact amount only
- Use Venmo’s business profile for stranger transactions
3. Phishing links: That urgent Venmo security alert isn’t what it seems
“Your Venmo account will be suspended unless you verify your information immediately!” Have you received a message like this lately? Don’t panic – and don’t click that link. Scammers create perfect replicas of Venmo’s login page, waiting to steal your credentials.
Red flags to watch for:
- Urgent messages about account suspension
- Strange-looking URLs (Venmo-secure.net instead of venmo.com)
- Requests for your password or PIN
- Poor grammar or spelling errors
Pro tip: Type venmo.com manually or use the official app. Never click links from emails or texts, no matter how legitimate they look.
4. Friend and family impersonators: “Hey, it’s me! I’m stuck abroad…”
A Chicago resident received a Venmo request from “Mom” asking for $750 for an emergency car repair. But here’s the catch—their mom was sitting right next to them at the time. Impersonation scams are skyrocketing as scammers get craftier at mimicking your closest contacts.
Common urgency tactics they use:
- “Stranded while traveling”
- “Lost my wallet and phone”
- “Emergency medical bills”
- “Car broke down, need help”
Pro tip: Create a family code word for money requests. If someone claiming to be family can’t provide it, it’s probably a scam.
How to protect yourself:
- Call or text your contact directly – even if it seems urgent
- Check the username carefully (scammers often use slight variations)
- Be suspicious of any urgent money requests
- Look at the account’s transaction history – new accounts are red flags
5. The too-good-to-be-true marketplace: Phantom PS5s and vanishing vendors
“PS5, barely used, $200!” If that price seems unbelievable, it probably is. One buyer learned this $200 lesson when their “amazing deal” on a PlayStation turned into thin air after payment. Marketplace scams on Venmo are booming because it’s nearly impossible to get back once you send that money.
Real-life warning signs:
- Prices way below market value
- Seller pushes for immediate payment
- No meeting in person or video call offered
- Recently created Venmo account
- Only accepts Venmo payments
Protect your wallet:
- Never use Venmo for stranger purchases
- Stick to platforms with buyer protection (eBay, PayPal)
- Meet local sellers in person at safe locations
- Use Venmo’s business profiles for legitimate vendors
6. The sneaky small-sum strategy: Death by a thousand $1 requests
Think scammers only go for big money? Think again. The latest trend is sending tons of small requests – usually $1-5 – hoping you’ll automatically approve them without looking. It’s like digital pickpocketing, and it’s working.
Why it works:
- Small amounts seem harmless
- People are used to quick-approving requests
- Multiple victims = big paydays for scammers
- Many victims don’t report small losses
Smart defense moves:
- Review EVERY request, no matter how small
- Set up notifications for all transactions
- Never approve requests from strangers
- Report suspicious requests to Venmo immediately
7. Fake charities: Disaster relief or a disaster waiting to happen?
After natural disasters, “charities” pop up like mushrooms on Venmo. During the recent California wildfires, scammers collected thousands through fake relief funds. Don’t let your good heart empty your wallet.
Before you donate:
- Check charitynavigator.org for legitimate organizations
- Verify the charity’s official payment methods
- Be wary of emotional manipulation tactics
- Look for an established charity presence, not just Venmo accounts
Your Venmo security toolkit: Lock it down
Think of your Venmo account like your house – every extra lock helps. Here’s your security checklist:
Must-do security steps:
- Enable fingerprint/face ID login
- Set up PIN code protection
- Turn on two-factor authentication
- Make transactions private (Settings → Privacy)
- Link to a single bank account or card
- Monitor activity weekly
Power move: Create a separate checking account with limited funds for Venmo. If someone hacks your account, then they can’t drain your main account.
Final thoughts: Stay sharp, stay safe
Venmo scams aren’t going away – they’re evolving. But now you know what to watch for and how to protect yourself. Remember: if something feels off, trust your gut. It’s better to seem paranoid than to become a victim.
Your three-second safety check before any Venmo transaction:
- Do I know this person in real life?
- Would this request make sense coming from them?
- Can I verify this another way?
Stop and think twice if you answer “no” to any of these. Bookmark Venmo’s Security Center and the FTC’s Scam Alert page for the latest scam alerts and security updates.
L’article Common Venmo scams and how to avoid them est apparu en premier sur Comparitech.
