Software payment applications (or apps) are quick, easy, used by many people and are generally convenient for managing money transfer transactions between two parties who are often times  family, friends, colleagues and some merchants.

There are a wide range of online and mobile payments apps and services that operate either nationally or internationally. Some services are operated by third-party, independent companies that connect to your financial accounts. Other payments apps were created and are operated by financial institutions, such as a consortium of major banks working together to streamline and secure digital payments. For the banks collaborating on digital payments; their shared service is built directly into their digital banking services.

A wide range of companies in the United States promote themselves as offering various types of digital payment services, and some of them may be used by millions of American consumers. Following is a brief list of only a few businesses that have at some time previously stated that they offer some form of digital payment services, either as (or as a version or combination of) an app, platform, website, network, service or intermediary:

• Alipay
• Apple^® Pay
• Cash App
• Google^® Pay
• Google^® Wallet
• PayPal
• Remitly
• Samsung^® Pay
• Skrill
• Venmo (owned by PayPal)
• Zelle^®*

Since payment apps can provide almost immediate transfer of funds—and often very limited options for tracking and recovering stolen money—these digital products and services are a ripe source for scammers to target. Like the old adage goes, “where there is money, there are always crooks trying to take it.”

Recognizing how these payment apps could cause problems for consumers, in late 2024 the U.S. government agency the Consumer Financial Protection Bureau (CFPB) finalized a ‘rule on federal oversight of popular digital payment apps to protect personal data, reduce fraud, and stop illegal “debanking”.’

Look out for warning signs of payment app scams

Scammers are tireless in their efforts, sophisticated in their messaging, experienced with using technology and incredibly convincing in their “job” of stealing from people. But there can be clear warning signs of their activity and when they have targeted you as their next victim.

The following are a few simple warning signs related to payment app scams:

1. Unexpected money requests from unknown people, companies or non-profits. Be cautious if you receive unexpected requests from strangers or organizations asking you to send money through a payment app., The requests could be focused on  a purchase or other debt you don’t remember, a membership fee, to claim a prize or collect sweepstakes winnings or a charity donation. Scammers send out mass unsolicited text messages and emails trying to get money (and account access).
2. Your purported bank or app operator contacts asks you to send money to yourself to “test” and confirm account transfers are working correctly. No financial institution (bank, credit union, brokerage firm, insurance carrier and other companies) should be contacting you to confirm funds are being transmitted properly through their app . This is a familiar fraud scenery where the scammer will essentially ask you to send money to yourself to verify that ”your account” is operating correctly. They may require you to first give them account access details. You should never share your personal account details with anyone you don’t know and trust, especially with unfamiliar callers.
3. Claims of an “overpayment” to you that now requires a rebate. Be wary if any unknown person or company contacts you and claims to have “accidentally” overpaid you through a payment app and then requests a quick refund of the excess money. Legitimate payment apps require confirmation and careful double checking before money can be transmitted. Scammers can also use this tactic to trick you into sending them money for fake debts.
4. Highly suspicious links inserted into a payment app message, email or text, especially if the message is unanticipated or alarming. Avoid clicking on links in payment app-related messages as this is a fast and easy way for scammers to steal usernames and passwords through fraudulent web pages. If you are concerned about the communication, instead of clicking on a link, go directly into the payment app to check for notifications and messages.
5. Emergency or threatening messages requiring an immediate response regarding your app account. Scammers try to induce panic and a sense of urgency by saying you must act now to fix the situation. They attempt to pressure you to act quickly without thinking . An example of a classic scam tactic is sending a fake message about your account claiming an emergency  is happening. Here are some examples of false claims you should be suspicious of:

• Your account has suspicious transactions and you must test the security of your account by sending money.
• There is an urgent personal information verification needed that requires transmitting money to authenticate yourself and your account.
• You are facing account suspension due to illegal or odd activity on your account, either by you or from a hacker.
• You have prize winnings that you must pay a fee to collect now or lose the prize. These winnings could be a lottery or raffle from either a government or company-sponsored contest.

Concerned about your Delta Community accounts because you may have been in contact with a scammer? Contact us right away

• If you think any of your Delta Community accounts have been compromised or may be at risk, immediately contact our Member Care Center via our toll-free number at 800-544-3328 with whatever details you have, including dates, amounts of money, email messages, email addresses, text messages, phone numbers and names.
• Please remember that Delta Community will never call, text or email you to ask for your checking, savings or investment account, ATM, debit or credit card numbers or passwords, your telephone access (IVR) PIN or one-time passcode.
• The Credit Union will also never ask members to send money electronically as a test or share one-time passcodes received via email or text.
• If someone purporting to be from Delta Community calls and asks for any of this type of information, hang up quickly and call the Credit Union Member Care Center at the number above.

Did you know that Delta Community members have access to a monitoring service that may enhance security for your accounts?

If cybersecurity is a serious concern, then it may be helpful to look at investing in an identity monitoring plan to help keep your personal and credit information safe. Delta Community Credit Union and its wholly owned subsidiary, Members Insurance Advisors, now offer their members identity protection plans from PrivacyGuard¹. All PrivacyGuard plans offer tools such as credit monitoring and dark and public web scanning of your personal information, activity alerts and access to fraud resolution experts as part of their benefits.

Note on business relationships and information sources related to this post

Note: Other than Zelle^®, Delta Community Credit Union does not have business relationships with the specific third-party entities mentioned in the list of digital payment services companies shown above. It is not endorsing the companies in the list, nor is it in any way commenting on their specific activities or business practices. It is mentioning them as illustrative examples of a few businesses that have publicly identified themselves as payments apps or as providing digital payment services that may include the use of apps.

Information sources consulted for this blog post included the U.S. government agencies the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB), pcmag.com, yougov.com, cnbc.com, emarketer.com, techradar.com and investopedia.com.

^*Zelle^® and the Zelle related marks are wholly owned by Early Warning Services, LLC and are used herein under license. To send or receive money with Zelle^®, both parties must have an eligible checking or savings account.

¹The benefits in PrivacyGuard are provided by Trilegiant Corporation.