Sent Money via Venmo or Zelle? Scammers Target Payment Apps — Here’s How to Protect Your Cash

Understanding the Risks of Payment Apps

If you’re one of the hundreds of millions of Americans who use payment apps, you’ve likely wondered which one is the safest. These apps make it easy to split expenses with friends, purchase goods or services, and settle bills. However, they are also increasingly linked to scams. Despite all the rankings and reviews available online, the reality is that there’s not much difference when it comes to falling for a scam.

Top Picks for Payment Apps

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In most cases, once you hit “send,” the money is gone and hard to get back. That’s why finding the safest payment app isn’t about picking the right brand, it’s about how you use it, and the number one thing you can do to safeguard your accounts comes down to learning how to recognize a scam.

How Payment App Scams Work

Payment app scams are common and costly. These apps move money immediately, and once it’s sent, there’s usually no cancel button. That makes them ideal for fraudsters. According to a Pew Research Center survey conducted in 2022, approximately 13% of U.S. adults who’ve used payment apps reported sending money to someone and later realized it was a scam.

Complaints are on the rise. In 2024, the Federal Trade Commission (FTC) received 90,571 reports of fraud through payment apps or services, nearly double the amount from the year before. And the average American is also taking notice, with 9 out of 10 U.S. adults calling it a problem in a 2025 survey by the Pew Research Center.

Making matters worse is the fact that it’s nearly impossible to get your money back. With credit cards, you can often cancel or dispute a charge, and with bank accounts, you may be reimbursed if you report fraud quickly. Payment apps generally don’t work that way.

Different Services, Similar Protections

When looking at payment apps, it is worth remembering that not all payment apps are the same. In terms of services, each of the major operators find ways to differentiate themselves, whether through fast, fee-free transfers directly between U.S. bank accounts (Zelle), social bill-splitting with friends and a debit card (Venmo), built-in banking and investing features (Cash App), online shopping and international payments (PayPal), or digital wallets that enable in-store, online and peer-to-peer payments on Apple or Android devices (Apple Pay and Google Pay).

They can also stand out in other ways. For example, Consumer Reports compared Venmo, Zelle, Cash App and Apple Cash in 2023, finding that Cash App and Apple performed best on safety, Apple ranked highest for Privacy and nobody scored particularly well for transparency.

However, when it comes to scams, the differences disappear. If you willingly send money to a scammer, meaning you authorized the payment, you’re unlikely to get it back, regardless of the app.

How to Protect Yourself

Scammers use a variety of tricks to persuade people to send money through payment apps. Common tactics include impersonating friends or family with urgent requests, posing as buyers or sellers on online marketplaces, or claiming you’ve won a prize but need to pay a fee to access it.

To protect yourself, take the following actions:

• Treat payment apps like cash: Only send money to people or businesses you trust.
• Don’t be rushed: Urgency is a major red flag; scammers often pressure you to act immediately.
• Double-check details before sending: Make sure the recipient’s name, username or phone number is correct to avoid sending money to the wrong person.
• Verify unexpected requests: If someone you know asks for money out of the blue, confirm the request directly through another channel to make sure it’s actually them and not a hacker who accessed their account.
• Use purchase protection: When buying goods or services with credit cards or other platforms, research the additional security options they offer.
• Never pay to receive money or prizes: Legitimate businesses and agencies don’t require upfront fees.
• Don’t share login details or security codes: Banks and payment apps will never ask for your password or one-time authentication codes.
• Enable security features: Use strong passwords, turn on multi-factor authentication and keep apps updated.
• Report suspicious activity quickly: Contact the payment app and report scams to the FTC at ReportFraud.ftc.gov.

Protecting Yourself from Other Scams

Identity theft is another way scammers target vulnerable populations. Consider that Americans lost over $12.5 billion to identity theft and fraud in 2024 — a 25% increase from the previous year, according to data from the FTC.

Aura is an AI-powered platform that helps manage device security and identity monitoring in a single dashboard. It does so by tracking potential scams and suspicious activity across multiple devices while monitoring your spending and flagging unusual transactions.

Aura’s family plan offers coverage for up to five adults, including unlimited kids and devices — with prices starting at just $25 per month. You can also connect multiple devices and receive alerts about potential fraud 650 times faster than other platforms. This allows you to find out if someone is opening a bank account or credit card under your name in minutes.

If identity theft does occur, members may be eligible for up to $5 million in coverage for certain losses and related fees. You can even get AI spam call and message protection, letting you browse with peace of mind that your data isn’t being sold to third parties.

Sign up for a 14-day free trial today to find out if Aura is right for you.