Venmo makes sending and receiving payments a breeze. Who doesn‘t love the convenience of splitting the dinner tab or paying your share of the rent with just a couple quick taps? However, that same efficiency also appeals to scammers who see easy access to your money. In 2021 alone, over 95,000 people reported fraud on payment apps like Venmo to the FTC, racking up $131 million in losses.
It‘s an alarming trend, and anyone relying on mobile payments should know how to stay vigilant. Keeping just a few steps ahead of the scammers goes a long way in protecting yourself and your hard-earned cash.
In this guide, we’ll walk through everything you need to know to outsmart Venmo cons including:
- Common scam strategies fraudsters use
- Ways to effectively report suspicious activity when you spot it
- Pro tips to keep your account and money secure against threats
Arm yourself with the right intel, and don’t let the scammers win!
Venmo Scams 101: What‘s Really Happening and Why
Before we get to reporting and avoiding scams, let‘s break down exactly how prevalent fraud is on Venmo and why it’s so problematic.
According to Venmo’s own data, there’s been a sharp increase in scams on the platform over the last couple years:
| Year | % Increase in Reports of Likely Scams |
|---|---|
| 2019 | 167% |
| 2020 | 50% |
| 2021 | 21% |
That adds up to a whopping 294% total jump in suspected scam cases between 2019 and 2021 alone.
So what’s fueling this sketchy upward trend? A few key reasons:
- Pandemic isolation – Loneliness and emotional vulnerability left people more susceptible to “romance” schemes.
- Financial desperation – Job losses led some fraudsters to turn to illegal money-making activities.
- Rise of “get rich quick” myths – Misinformation had people seeking risky ways to generate income fast.
- Account compromises – Old/reused passwords got hacked, allowing thieves access.
Fraudsters now see vast potential for fast cash outs by taking advantage of Venmo’s popularity and user trust. But why has Venmo itself struggled to contain the spread?
For starters, there are minimal identity verifications or protections required to sign up. No social security number or formal ID confirmation allows shady users to create anonymous accounts.
Additionally, Venmo makes it easy to search all users and transactions on the platform. So criminals utilize that visibility to learn names, profiles, behaviors, connections and target potential victims.
Let’s now move on to breaking down the most common schemes…
The "Greatest Hits" of Venmo Scams
While scammers constantly fine-tune their tactics, these 8 varieties make up the bulk of Venmo frauds people face:
| Scam Type | % of Payment App Fraud Reports | Average Loss |
|---|---|---|
| Romance Scams | 35% | $2,600 |
| Online Purchase Scams | 26% | $701 |
| Phishing Scams | 15% | $1,200 |
| Check Scams | 9% | $1,500 |
| Account Takeovers | 5% | $500 |
| Fake Emergencies | 4% | $750 |
| Advance Fee | 3% | $300 |
| Friend Imposter | 3% | $250 |
Next let‘s explore how each scam starts, evolves, and ultimately extracts money from victims. Being able to recognize these common maneuvers is key to avoiding them from the get-go.
Romance Venmo Scams
The most lucrative Venmo scam to be aware of is the romance scam — representing over 1/3 of all app payment fraud!
These start innocently enough… You meet someone nice online or through a dating app. They seem interested in you, you exchange numbers, and soon you’re texting or messaging daily.
Red flag behaviors slowly start to emerge:
- They have an excuse for why they can’t meet in person yet
- They profess intense feelings very quickly
- They share some sob story about financial troubles
Ultimately, the “ask” comes:
- They request to borrow money for an emergency fix or temporary help through Venmo
- They claim they’ll pay you right back
Over time, that first loan turns into more “emergencies” and repeated requests…
By fostering emotional intimacy quickly, scammers manipulate that connection to drive ongoing payments. Targets make excuses for them while sending money again and again– sometimes hundreds or thousands of dollars.
Of course, payment plans and professed love slowly fade…along with all the cash they swindled away for “plane tickets” or “medical bills.”
The Venmo angle specifically helps fraudsters scale romance scams more easily to maximize profits. Quick cash outs get laundered and become almost impossible to recover.
Online Purchase Scams
Have you ever tried to buy something secondhand online through Craigslist, Facebook Marketplace or even dating apps…only to get ripped off?
You’re interested in a too-good-to-be-true discount on an iPhone, game console or coveted sneakers. Instead of paying through the platform though, the seller insists on using Venmo or another P2P app for payment. This should be sign #1 that things may go sideways…
Red flags include:
- The seller pushes very hard for Venmo specifically
- You’re asked to pay before receiving the item
- Their excuses why you can’t meet locally don’t add up
Sadly, most realize too late that they got scammed — sending money instantly through Venmo yet the item never arriving. And since P2P platforms offer no purchase protections, that money is gone.
By exploiting Venmo‘s irreversible payments and anonymity, these purchase scams are simple and very profitable for criminals.
Phishing Scams
Maybe you get a text claiming there’s been suspicious activity on your Venmo account. It says to click a link to reset your login immediately.
Or you receive an email about an important account alert with a link to resolve an issue that needs attention.
These messages are actually phishing scams aiming to trick you into clicking malicious links rather than contacting Venmo directly.
What happens if you click?
- You could unknowingly download malware that steals your passwords
- It may open a fake login page capturing your username and password
- Entering account details compromises your financial data
Once credentials get compromised, thieves login to siphon money from your real Venmo balance…which can quickly drain your linked bank account too.
By posing as credible notifications from Venmo, phishing scammers get account access rather than just one-off payments. This allows them scale theft across many innocent user accounts.
Check Scams
With banks offering robust fraud protections people turn to checks, money orders or online payment services as safer options for making purchases. Unfortunately, scammers also leverage that perception to their advantage.
Say you list a motorcycle for sale on Craigslist for $2,000. A prospective buyer offers to mail you a certified check covering the cost once you agree on the sale. Who would pass up a guaranteed form of payment?
You deposit the check right away and notify the buyer you received their payment. Trusting the funds are cleared since it’s a formal check, you withdrawal $2,000 in cash from your account.
However, days later that pending deposit bounces…The check was fake!
By taking advantage of the float time around check deposits, scammers maximize the small window where withdrawn funds can’t yet be clawed back. You’re left liable while they walk away with cash in hand.
Reporting Venmo Scams
If you encountered shady activity that turned into a Venmo scam loss, reporting the issue promptly can help prevent that same criminal from targeting others.
You likely cannot reverse any fraudulent transactions or retrieve lost money. However, notifying Venmo at least puts the behavior on their radar to help identify larger patterns and crack down on offending accounts.
Here’s how to report a Venmo scam efficiently:
-
Collect evidence: Screenshot suspicious messages, transaction details like usernames/IDs, emails or texts from the scammer, etc. Organize everything chronologically.
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Contact Venmo: Email comprehensive documentation to
[email protected]or report in the Venmo app → Settings → Get Help → Contact Us -
Secure your account: Change your password immediately to protect against potential account takeovers. Remove linked payment sources that may have been compromised.
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Notify your bank: Contact financial institutions tied to Venmo to monitor for additional fraudulent charges. They can also freeze debit cards to prevent withdrawals if your username/password got phished.
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Report wider fraud: File additional complaints with the FTC and BBB to help identify larger click fraud operations at play.
Pro Tip: The more evidence you can provide to Venmo around suspicious transactions, the easier you make their job identifying violations and shutting down accounts. Organize details clearly and comprehensively.
Once submitted, how long does it take Venmo to investigate? Timeframes vary case by case, but Venmo aims to resolve complaints in 10-14 business days based on what we’ve seen anecdotally. More complex investigations related to wider fraud rings could understandably take longer.
If you’re anxious to hear back, follow up a couple weeks later via phone for an update. Reiterating concerns directly demonstrates the legitimate fraud — and your frustration — more emphatically.
9 Pro Tips to Outsmart Venmo Scammers
Staying one step ahead of scams in the first place saves you time, stress and money. Use these pro tips to lock down your account:
🔒 Use randomly generated passwords (not pet names!), changed every ~90 days
🔒 Enable two-factor authentication using an app like Google Authenticator
🔒 Edit privacy settings to “private” to reduce visibility of payments
🔑 Never share passwords or verification codes with anyone for any reason
🔍 Inspect links/messages closely for typos, odd URLs or redirects
❌ Ignore random payment notifications – verify sender legitimacy first
🕵️♀️ Run profiles of frequent recipients through scam reporting sites
👀 Set up payment notifications to monitor account activity closely
📝 Document account changes, new linked banks, contact updates for reference
Also be vigilant in watching for signs of oversharing on social media around vacations, new expensive purchases etc. Scammers can leverage that insight against you!
For even more guidance safeguarding your money, grab our handy Venmo Protection Checklist using the form below:
[cta_form_signup]Yes! Email me the Venmo Protection Checklist[/cta_form_signup]The additional precautions are worthwhile considering how rampant scams are lately. Just make sure security measures don’t get so cumbersome that they impact your convenience and experience with the app!
Beat Scammers at Their Own Game
We hope this overview better equips you to sidestep the schemers and have smooth, protected interactions on Venmo. Knowledge around the sneaky ways they target innocent people is half the battle.
Stay vigilant, lean on built-in Venmo protections, and don’t hesitate to report suspicious activity when you spot it.
Share this intel with family and friends too so fewer people lose hard-earned money to these creeps! The more awareness around common tactics, the less effective they become over time.