Do you have strategies in place to prevent payment app fraud?

More and more consumers are using payment apps like Venmo and Zelle to send money to friends and family. While allowing payments through these apps creates high value for your consumers, it has also opened up a new channel for fraud.

Financial institutions are reporting attacks where cybercriminals are draining accounts by gaining fraudulent access to their members’ debit card or account numbers. These attacks primarily occur one of the following ways:

  1. Consumers are scammed into sending criminals money directly thru a payment app. Click here to view more information from the FTC on how these consumer scams occur.
  2. Criminals fraudulently enroll consumers into the payment app using the member’s card number stolen from a data breach, i.e. the 2017 Equifax Breach.

 

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