Mobile payment services and apps: a miracle of the modern age.

For those of you not familiar with them, they are an easy way to receive and transfer money, usually via your mobile devices. Services such as Apple Pay, PayPal, Square, Venmo and Zelle are just a few examples of these platforms. What most do not know is that these services are equally favored by scam artists as an easy payday. As such, Better Business Bureau recommends you use these platforms only as a way to transfer money to family and close friends.

The ease that these mobile payment services offer for transactions often make their utility a double-edged sword. Earlier this year, BBB released a consumer warning regarding a popular scam occurring on the app Venmo. The ploy was that a stranger would transfer you a sum of money, usually a low amount at that, and apologizing that they had done that on accident, and then asks you to send them back that same amount.

Once doing so, the scammer will then cancel their original payment to you, and make off with that second payment, leaving you in the lurch. To counteract this, BBB recommends you notify them that they have the ability to cancel the payment through the app. If they refuse to comply or try to stall, chances are that person is trying to scam you.

Especially around the times of upcoming sports games and concert events, scammers will pose as ticket sellers, and will offer tickets for prices that certainly are “too good to be true.” They then convince the buyers to either put down a small down-payment or even pay in full prior to receiving the tickets. After receiving the money, the scammer will then simply break contact with the buyer and disappear.

You can file a complaint against these individuals with the company that runs the app, but usually by the time anything can be done about it, your money and the scammer are most likely in the wind, never to be heard from again. A small side-note for purchasing tickets: prior to a show, you can always go to the stadium that the event is held at and verify the authenticity of your ticket. If you are somewhat suspicious of the ticket seller’s authenticity, you can always check with the National Association of Ticket Brokers to verify them.

What can you do to prevent falling prey to these sorts of scams? BBB recommends you not use a mobile payment service unless it is with someone that you trust, such as family or friends. In regards to any and all online purchases you might make, BBB always recommends that you use a credit card. Purchases with a credit card are much easier to cancel and/or dispute, preventing a scammer from making off with your money. Normal methods of payment, such as with a credit card can sometimes be a hassle, but the extra steps can be worth it. Better to lose a few extra minutes of your time, rather than a sizable sum of money. Not to mention the amount of time you might spend trying to get it back.

Alternatively, you should use a platform that offers buyer protection, which would allow you to cancel a transaction for a full refund if a deal goes awry. If someone is paying you via online money transfer, monitor the transaction closely, and ensure that the transaction goes through, and is not canceled at the last second. If you believe that you have been cheated or tricked by a scammer via a mobile payment service, report it to the company’s support staff immediately. Be sure to also make a report of the scam on BBB Scam Tracker at bbb.org/scamtracker so that others can be on the lookout for that scam as well.

 

Clayton Alexander is the Storyteller/Communications Specialist at Better Business Bureau serving Central California & Inland Empire Counties.