Venmo Scam warning

[Maenad]

Yesterday my phone pinged to let me know that "Sarah Beth" paid me $10.

Thing is, I don't know anyone of that name. So, off I trundle to Venmo Customer Service, whose FAQ tells me that if someone sends me money in error, I should just send the same amount back to them! How naive are these people?!

After some light internet searching, I find this from Snopes: https://www.snopes.com/fact-check/venmo-scam/ Eerily published the previous day. So, I contact Customer Service and after a couple of emails back and forth to get them my identifying information, they reverse the payment.

This morning I got a second one from "Nicole", who upped the ante and sent me $50, with a follow-up oh-so-innocent email "Could you send a payment back to me? I meant to send that to my son's daycare".

Right.

Second email to Venmo Customer Service.

Granted, they've been prompt in reversing the payments, but if I get anymore of these I may just close out my account, it's a hassle dealing with scammers.

So, if this happens to you, here's what you need to do:
Email support@venmo.com from the email address they have on file for you.
Give them your full name, the last 4 digits of the credit card number you have on file with them, and the name/amount/date of the payment you want reversed. Then ask them specifically to "reverse the payment". They can't "cancel" payments, but they can "reverse" them.

I was so tempted to tell "Nicole" "Too bad, so sad, be more careful next time", but according to some of the articles the money likely came from a stolen cc anyway, so it's not like the scammer would be out anything.

 

[Nemo2]

Tell them you've sent them money via Ḥawāla, but that they have to go to Yemen to pick it up.

 

[catii]

Interesting. I've got several of those mystery payments over the past month, & just let them sit. So far, nothing has bounced, so I'm almost $200 richer. If nothing has changed after 90 days, I'll go ahead & spend it.

 

[CardsFan]

We have never used Venmo, and now have a reason to never consider it in the future.

We really have no need.

If DS is in need (not likely) I can send him a check. He will have to go through all of the effort to take a photo and send it to his bank.

 

[urn2bfree]

I have used Venmo for over a year and had zero issues.

 

[twaddle]

Does venmo refund stolen money?

Venmo eventually discovers the fraud, at which point the company reverses charges made with the stolen information. If the money is still in your Venmo account, the company takes it back and you're left without payment for sold goods

 

[MuirWannabe]

Interesting. Thanks for the heads up as this seems like a scam it might be easy to fall into. I’ve not heard of it before. I use both Venmo and Cash, but have not had this happen yet. I’ve warned the rest of my family based on your story.
Muir

 

[RetMD21]

Good to know. Per Snopes it looks like the sender can cancel it themselves.

 

[Dtail]

Never felt comfortable using Venmo and other like apps.

 

[Acrewing]

I was wondering how long it would take for something like this to happen on venmo. I know quite a few people that use it too so I'll have to share the info. I'm with Dtail though, never quite liked it and other similar payment apps.

 

[beyou]

Yesterday my phone pinged to let me know that "Sarah Beth" paid me $10.

Thing is, I don't know anyone of that name. So, off I trundle to Venmo Customer Service, whose FAQ tells me that if someone sends me money in error, I should just send the same amount back to them! How naive are these people?!

After some light internet searching, I find this from Snopes: https://www.snopes.com/fact-check/venmo-scam/ Eerily published the previous day. So, I contact Customer Service and after a couple of emails back and forth to get them my identifying information, they reverse the payment.

This morning I got a second one from "Nicole", who upped the ante and sent me $50, with a follow-up oh-so-innocent email "Could you send a payment back to me? I meant to send that to my son's daycare".

Right.

Second email to Venmo Customer Service.

Granted, they've been prompt in reversing the payments, but if I get anymore of these I may just close out my account, it's a hassle dealing with scammers.

So, if this happens to you, here's what you need to do:
Email support@venmo.com from the email address they have on file for you.
Give them your full name, the last 4 digits of the credit card number you have on file with them, and the name/amount/date of the payment you want reversed. Then ask them specifically to "reverse the payment". They can't "cancel" payments, but they can "reverse" them.

I was so tempted to tell "Nicole" "Too bad, so sad, be more careful next time", but according to some of the articles the money likely came from a stolen cc anyway, so it's not like the scammer would be out anything.

I don't understand.
You didn't send them any money, so why bother contacting customer service and what exactly could they reverse ?

If someone sent me money in error, how would I know scam or real, doesn't matter I would not respond. If they request refund...same response, none.

 

[sengsational]

If you send a payment back, you have laundered the money for them (clean money out of your account isn't the same as dirty money from their account), so obviously don't do that. If you did, thinking you were "even", the original scam $50 you got at first, then disappears from your account when Venmo realizes it came from a stolen card. This scam is almost identical to the "deposit this check for me, then give me some money and keep a cut", but the check is fake.

If you do nothing, the scammer would probably reverse the transaction on their own, once they figure you're not an easy mark. This leaves the money connected to the stolen credit card, and so not advancing the scam, but also not costing the scammer anything but some time.

If you alert Venmo to the fraud, and Venmo does what they should be able to do, the scammer is out of business.

 

[beyou]

If you send a payment back, you have laundered the money for them (clean money out of your account isn't the same as dirty money from their account), so obviously don't do that. If you did, thinking you were "even", the original scam $50 you got at first, then disappears from your account when Venmo realizes it came from a stolen card. This scam is almost identical to the "deposit this check for me, then give me some money and keep a cut", but the check is fake.

If you do nothing, the scammer would probably reverse the transaction on their own, once they figure you're not an easy mark. This leaves the money connected to the stolen credit card, and so not advancing the scam, but also not costing the scammer anything but some time.

If you alert Venmo to the fraud, and Venmo does what they should be able to do, the scammer is out of business.

Or if you transfer the $ outbound, costs the scammer $.
Can venmo undo that ?

 

[sengsational]

Venmo will undo fraud (I would imagine...no 1st hand experience) to the extent they are able. The problem is if someone closes the associated linkages with Venmo. Once the bad guy extracts value, they disappear. So you and Venmo may agree that you lost money through a fraudulent transaction, but the bad guy's account is closed, so you are left holding the bag.

 

[beyou]

Venmo will undo fraud (I would imagine...no 1st hand experience) to the extent they are able. The problem is if someone closes the associated linkages with Venmo. Once the bad guy extracts value, they disappear. So you and Venmo may agree that you lost money through a fraudulent transaction, but the bad guy's account is closed, so you are left holding the bag.

Not sure we are on the same page.
I mean if you RECEIVE one of these fraudulent transfers and the request to return, and you instead of returning, "cash out" as Venmo says. So you keep the $ and move out of Venmo. Or pay someone else with the $ and you then have zero balance. Later they decide the sender of funds you received is a fraud, but your receipt of the funds is gone.... then what ? Can Venmo claw back your ill gotten gains ? Note that one might do so intentionally or unintentionally, no way for Venmo to know the difference.

 

[cathy63]

Not sure we are on the same page.
I mean if you RECEIVE one of these fraudulent transfers and the request to return, and you instead of returning, "cash out" as Venmo says. So you keep the $ and move out of Venmo. Or pay someone else with the $ and you then have zero balance. Later they decide the sender of funds you received is a fraud, but your receipt of the funds is gone.... then what ? Can Venmo claw back your ill gotten gains ? Note that one might do so intentionally or unintentionally, no way for Venmo to know the difference.

Yes, Venmo can claw back your ill-gotten gains as long as they know your bank account info or credit card number. You probably gave them permission to do this when you accepted the Ts&Cs as you signed up for the service. Even if you close your Venmo account, it's unlikely that they actually delete all your account data. If you closed all your linked accounts as well, then they could always send the debt to collections and ding your credit report. How far they would go probably depends on how much money is involved.

 

[sengsational]

I agree with Cathy. The bad guys have an advantage because they don't have their own accounts and financial reputation to protect. So if you, a good guy, tries to scam the scammer, you are at a distinct disadvantage.

 

[pb4uski]

So if I just let the money sit there in Venmo and do nothing then is there any harm or risk?

 

[Koolau]

Never heard of Venmo before this thread. One more reason I don't add apps to my phone or use any more electronic "transfers" than I absolutely must. If all else fails, see my Tag Line, though YMMV.

 

[JoeWras]

On a recent volunteer trip, I treated everyone to lunch. I was happy to do it.

Later, the youngster in the group comes up to me and says: "I'd Venmo you for lunch, but you probably don't have an account."

I just smiled and told him to enjoy the lunch.

 

[Philliefan33]

I hadn’t heard of that scam, thanks for posting. If I get a random payment I will just ignore it and let it disappear.

The scam is not the fault of Venmo, anymore than than it is Craigslist’s fault when a scammer sends a check for too much and asks the seller to refund the difference. Scammers abound and we need to think before acting.

I use Venmo for small transactions and have found it to be very useful, especially when dealing with youngsters. Go out to eat with a group? One person pays with a credit card and others reimburse via Venmo. DD runs an errand to the store for me and I reimburse her via Venmo. DD uses my Costco account to have baby diapers delivered to her home and reimbursed me via Venmo. It’s a very convenient way to do small transactions with people you know.

I keep < $200 in my Venmo account and it’s linked to a checking account with a low balance so there’s not much money vulnerable to a hack.

 

[misanman]

I've been using Venmo with my kids and in-laws for quite a while and find it much more convenient than checks or cash. Also have the Cash App. My bank promotes Zelle, but I've never been successful at signing up due to some web-related issues.

 

[Maenad]

The scam is not the fault of Venmo, anymore than than it is Craigslist’s fault when a scammer sends a check for too much and asks the seller to refund the difference. Scammers abound and we need to think before acting.

Just to be clear, I don't blame Venmo for the scam - it's definitely not their fault. I do blame them for a FAQ that blithely tells you that if you receive money in error you should just send money to that person in return. It shows a disturbing naivete about the fake-check scam, which has been in existence for a loooooong time.

I also think they have the responsibility to mistake-proof the process a little more. A simple "only your friends can send you money and you have to approve a friend request" would help cut down on this particular scam. Or just allow people to refuse a payment - one click and it returns to sender (or two clicks if you want to add in a confirmation).

 

[Koolau]

Just to be clear, I don't blame Venmo for the scam - it's definitely not their fault. I do blame them for a FAQ that blithely tells you that if you receive money in error you should just send money to that person in return. It shows a disturbing naivete about the fake-check scam, which has been in existence for a loooooong time.

I also think they have the responsibility to mistake-proof the process a little more. A simple "only your friends can send you money and you have to approve a friend request" would help cut down on this particular scam. Or just allow people to refuse a payment - one click and it returns to sender (or two clicks if you want to add in a confirmation).

It occurred to me, reading this thread, and especially this post: We are engineering all kinds of things to be easy, fast and even cheap. Doing so makes it easy fast and cheap to scam people. What did we expect? 15 years ago, the very FIRST time I used a credit card over the internet, my card info got stolen. We engineer safety protocols and "bad people" engineer around them. So shall it ever be. YMMV

 

[braumeister]

I'm beginning to wonder about that very large amount I got unexpectedly in Venmo from someone named John Beresford Tipton. Does anyone know of him? Is he good for the money?