What are Peer-to-Peer Payments?
Peer-to-peer payment systems—also known as P2P payments or money transfer apps, like Zelle, Venmo, PayPal and Cash App—allow users to send one another money from their mobile devices through a linked bank account or card. They make splitting bills with friends and family painless.
When using these type of instant payment services, it’s important to remember not to send money to people you don’t know. Think of P2P transfer services in the same way you do cash, where you would be very reluctant to mail cash to anyone you didn’t know.
Common Peer-to-Peer Payment Scams
Scam 1: Fraudsters inform a consumer that they “accidentally” sent funds to him or her via instant money transfer services (i.e., Zelle, Venmo, Cash App, etc.). The fraudster then asks the consumer to send the money back as a favor to undo their “error.” If the victim agrees and authorizes a new P2P credit to the fraudster, the fraudster will then recall the initial credit he/she sent, leaving the consumer victim in a loss position because he/she authorized the credit reimbursement to the fraudster.
Scam 2: Fraudsters request payment via one of the P2P services for the goods they have for sale. The victim will then send their P2P credit to the fraudster, who either never delivers the item purchased, or sends a fraudulent one (event tickets are a common offering in this scam). Because the victim authorized the payment to the fraudster, in many cases they are not covered by Regulation E unauthorized transfer protections or the policies of the P2P service.
Reporting P2P Fraud
If you feel you have been a victim of P2P fraud that is related to Bellco, please call our Member Services Dept. at 1-800-BELLCO-1 (235-5261).