How to Spot Common Venmo Scams

Venmo is an electronic wallet app owned by PayPal that is currently only available in the US and can be used by individuals to send each other money. Venmo has been growing in popularity and it was estimated to have 50 million active users in 2019. 

Venmo is intended mainly to be used for sending money to friends and family. As the app is meant only for transacting with people you know and trust, Venmo assumes that you are absolutely sure that the person you are sending money to is genuine. Therefore, the company does not provide an option to cancel payments (unless you sent money to an inactive account) or apply for a chargeback.

5 Common Venmo Scams

The large user base and refunds being impossible make Venmo the preferred choice of many scammers. Watch out for these Venmo scams:

• Purchases with stolen cards: Scammers are known to approach sellers on platforms like Craigslist and OfferUp pretending to purchase whatever item is for sale. They may even offer to pay more than the asking price due to some made-up reason.
  
  There will always be a sense of urgency and they will demand that the item is shipped as soon as the payment goes through, even going as far as messaging the seller continuously till they provide proof that the item has been shipped.
  
  The scam here is that the scammer’s account was funded using stolen credit card details. When this fraud is discovered, Venmo will deduct the amount if it is still in your account or hold you responsible for paying it back if it isn’t. 
  
  
• ‘Accidental’ payment scam: In a variation of the above scam, you may suddenly receive a considerable amount of money into your account. The sender will then frantically message you saying that the money was sent to you by accident and the intended recipient was someone else.
  
  They may even let you keep a part of the money as ‘a thanks’. Of course, after you send them the money, you will soon find out that the amount you received and the money you sent have both been deducted from your account.
  
  
• Off-platform payment scam: This is a scam to watch out for when the situation is reversed, ie. you are the buyer. Instead of accepting payment through the platform on which the item is listed, the seller will insist that you pay outside the original platform using Venmo.
  
  It is only after you make the payment that you realize that you have fallen for an Advance Fee scam. The seller will make excuses about why the item hasn’t shipped yet and will eventually ignore you completely.
  
  
• Phishing: You might receive a call or text message that there is a problem with your Venmo account that needs to be solved immediately. The scammers might try to scare you into acting quickly by saying that a huge payment will be deducted from your account unless you take action.
  
  Solving this non-existent problem requires you to share your login details which can then be used by scammers to steal funds from your account.
  
  
• ‘Get rich quick’ schemes: Venmo is also used in ‘money flipping’ schemes and ‘gifting circles’. The former is a type of Advance Fee scam where the scammer will make ridiculous promises such as doubling your money in an hour, only to disappear with it.
  
  The latter is a typical pyramid scheme where you have to send money to someone and invite at least two others to do the same. If you do this, you are promised to get back more money than you initially put in. Of course, your ‘gift’ is nothing but a part of the money paid by your friends or family with the rest of it going to the scammer.

How to Avoid Venmo Scams

Once you know about the common Venmo scams and how scammers exploit the app, keeping a few simple tips in mind should easily help you avoid Venmo scams.

• Don’t transact with strangers: Use Venmo as it is meant to be used. Only use it to pay or receive money from people you personally know or can meet in person.
  
  
• Don’t use Venmo to buy or sell things: Venmo does not have purchase protection policies in place simply because it is not intended for purchases.
  
  
• Link a credit card instead of a bank account: Using a credit card to fund your Venmo account can provide a layer of security, as credit cards have a chargeback facility. Therefore, you can dispute fraudulent charges with the card company.
  
  
• Secure your account: Enable security features such as multi-factor authentication so that others cannot access your account even if they have your login details.

I Fell for a Venmo Scam, What Now?

Sorry to bear bad news, but if you have fallen for a Venmo payment scam, the chances of getting your money back are slim to none. This is true even if you realize that it was a scam seconds after making the payment. Venmo states the following about the ability to cancel payments:

It is not possible to cancel a payment to an existing Venmo account. Once you send a payment, the funds are available to the recipient right away. If you need the payment returned, please have the recipient send you a payment for the same amount. Upon return, you can transfer those funds from your Venmo account to your bank account. If you accidentally pay your friend twice or made a duplicate payment, have the recipient pay you back for one of the payments. 

Venmo Support can only reverse a payment if the recipient gives their explicit permission, their account is in good standing, and they still have the funds available in their Venmo account. Venmo Support cannot reverse a payment at the sender’s request. 

In short, the only way to get your money back is if the scammer has a change of heart. Unfortunately, we know all too well that scammers are heartless. 

To report a scam, you can contact Venmo using the Contact Form or alternatively using the following methods:

Other Ways to Connect

• For the fastest service, chat with us in our mobile app (M–F, 7:00am–1:00am ET; Sat–Sun, 9:00am–11:00pm ET)
• Call us at (855) 812-4430 (M–F, 10:00am–6:00pm ET)

Venmo Credit Card (powered by Visa)

• Call Synchrony Bank at the phone number listed on the back of your Venmo Credit Card (24 hours a day, 7 days a week)
• If your card has been lost or stolen, please call Venmo Credit Card support from the Get Help section of your Venmo app. Synchrony Bank's contact information can also be found in our Venmo Credit Card FAQ.

Venmo Debit Card and Purchasing with Venmo Support

• Send us an email by filling out the form above and selecting "Venmo Debit Card question"
• Send us an email at debitcardsupport@venmo.com

Business Profile Support

• Send us an email by filling out the form above and selecting "Business Profile"
• Send us an email at businesssupport@venmo.com

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