The Rise of Digital Payments
By: The First National Bank in Tremont (FNBT)
The use of digital payments has significantly grown over the past ten years, especially post-2020. Its inception is often paired with online retailers and resell stores, like eBay, bringing the application PayPal into the scene. Nowadays, consumers use digital payments, from online bill pay to splitting dinner with their friends. With the rise of new products like Zelle ®, Venmo, Cash App, Google Pay, and Apple Pay, one thing is clear; peer-to-peer digital transactions are here to stay. Just as new technology grows, so does its counterpart – scams. Scammers are utilizing the urgency and convenience of digital payments to scam consumers. What does this mean for you?
"That was an accident. Can you send the funds back?"
Fraudsters create free profiles on digital payment applications, send money to strangers, and immediately ask for it back. Everything you see looks legitimate, but you do not see that the fraudster has used a stolen credit card to send you the money, which will result in a chargeback, therefore canceling the transaction. They often will quickly reach out, and present a sense of urgency or regret, to catch you off-guard, hoping you return the money that would come out of your account and not return the 'accidental funds.' If you encounter a situation like this, do not return any money. Instead, ask the sender to cancel the transaction or contact the provider's support to reverse the transaction.
Tips to Protect Your Money:
Consider linking a credit card to digital payment applications, not a debit card.Only transfer funds to people you know personally and have discussed the transfer.
Avoid using digital payment applications for business use.
Enable PIN and or fingerprint confirmation for transfers.