As digital payment apps continue to grow in popularity, New York officials are warning consumers to take extra precautions to avoid scams and protect their money.
The state’s Division of Consumer Protection issued an alert Tuesday outlining key safety tips for users of apps like Venmo, Zelle, and Cash App. According to the Federal Trade Commission, consumers nationwide lost over $390 million to payment app-related fraud in 2024—an increase of more than $100 million from the year before.
“Scammers are finding new ways to exploit these payment apps every day,” said NYS Secretary of State Walter Mosley. “If you do choose to use them, make sure you follow these tips.”
The agency noted that unlike credit cards, payment apps are not legally required to recover money lost to fraud. Most apps also lack federal deposit insurance, making funds vulnerable in the event of a hack or company failure.
Officials advise users to:
- Regularly transfer balances to a traditional bank account
- Only send money to people they know
- Avoid linking payment apps to full bank accounts
- Set accounts to private
- Use strong security features like fingerprint or facial recognition
Consumers who believe they’ve been scammed should report it to the app provider, their bank, the FTC at reportfraud.ftc.gov, and the FBI’s Internet Crime Complaint Center at ic3.gov.
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