INDIANAPOLIS – Financial experts are warning consumers about scams that are targeting peer-to-peer payment apps like Venmo and Zelle.
Many of the scams start with a text message that appears to warn the consumer about a fraudulent bank transfer. The fraudster hopes you’ll reply. If you do, though, you’ll likely end up losing thousands of dollars.
Seconds after you respond to the scam text message, you’ll get a phone call. The caller ID will look legitimate, as if it coming from the bank. The person on the other line will insist they need to secure your account. They’ll request personal information to “verify” you’re the account holder.
At that point, they’ll ask for your username. Behind the scenes, though, the criminal will use that and the “forgot password” feature to hack into your account. Because they have to get around two-factor authentication, the scammer will say something along the lines of, “I’m going to send you a code, read it to me over the phone.” From there, they’ll change the login information, break into your account and steal your money.
It’s because of security concerns that financial experts are telling people to reconsider linking their payment apps to debit cards and bank accounts.
“The convenience factor of linking a bank account is pretty high,” Joe Fitter, with the IU Kelley School of Business, said. “The challenge with that is that often times, there is no associated…
