Person-to-Person Payment Safety Tips

In our modern, interconnected world, the convenience of person-to-person (P2P) payment platforms has revolutionized how we manage our finances. From splitting a dinner bill with friends, paying rent, or buying goods from a stranger online, P2P apps like Venmo, Zelle, PayPal, and Cash App have made these transactions straightforward and fast. But with this simplicity comes the risk potential. How can you keep your transactions secure and avoid scams or fraud? Here are some top safety tips to consider when using P2P payment platforms.

1. Only transact with people you trust

The fundamental rule of thumb with P2P transactions is to only send money to people you know and trust. Avoid transacting with strangers whenever possible, and verify their identity and legitimacy if you must. Remember, these transactions are similar to handing over cash – they’re usually instant and often irreversible.

2. Keep your app up to date

Software updates often contain critical security patches that protect your data from the latest known threats. Regularly updating your P2P apps and device’s operating system ensures you have the latest defenses against potential attacks.

3. Enable additional security settings

Most P2P platforms offer extra layers of security, such as PIN codes, fingerprint recognition, or face ID. Make sure to take advantage of these. Furthermore, setting up two-factor authentication (2FA) can add another hurdle for anyone trying to gain unauthorized access to your account.

4. Be aware of common scams

Phishing scams, fake customer service numbers, and “overpayment” scams are common tactics fraudsters use. Always be suspicious of unsolicited payment requests; remember, legitimate companies will never ask for your password or PIN.

5. Monitor your transactions

Keep a regular check on your transaction history for any suspicious activity. If you notice something strange, report it to your P2P provider immediately.

6. Keep your personal information private

Avoid publicly sharing sensitive details like your home address, phone number, or P2P usernames on social media. Scammers can use this information to impersonate you or trick you into falling for scams.

7. Limit the information you share in transaction notes

Most P2P apps have a section for notes when making a payment. Be mindful of the personal information you put in these notes, as they may be public, depending on your privacy settings.

8. Use secure Wi-Fi connections

When transacting on P2P platforms, use a secure and private internet connection. Public Wi-Fi networks can expose your financial data to hackers.

9. Link your P2P apps to a credit card or a specific bank account

When possible, avoid linking your primary bank account to your P2P apps. Instead, consider linking a credit card or a separate bank account with limited funds. This can help limit your losses if your account is compromised.

10. Be cautious with transaction links

Some P2P platforms allow users to request money via a link. Scammers may send fraudulent links that look authentic, so always double-check before clicking.

In conclusion, P2P payment platforms provide tremendous convenience but pose potential risks. It’s important to stay vigilant, be aware of common scams, and take proactive steps to protect your financial information. By following these safety tips, you can continue to enjoy the benefits of P2P apps while minimizing your risk.

Tim Daves

CISO, Susser Bank