GRAND RAPIDS, Mich. — Attorney General Dana Nessel is warning Michiganders about a Venmo scam impacting customers around the nation.
Scammers have started "accidentally" sending money to Venmo customers and then asking for the money back.
State officials said the scammers are often using stolen credit cards to send the money. If a victim returns the funds and the owner of the stolen card reports the initial payment as fraudulent, the funds would then come from the victim's account.
“Scammers are constantly evolving their tactics to exploit consumers,” Nessel said. “Remember, it’s always best to use an extra degree of caution with any transaction involving someone you do not know. If you believe you have been a victim of a scam, please do not hesitate to reach out to my department.”
Nessel said scams on Venmo can come in different forms, including the following:
- Scammers impersonating a consumer's bank to alert them about “suspicious activity” on their account and direct them to send money to themselves or “the bank’s address” to reverse a transaction or to verify the account is not frozen.
- Fraudsters reaching out to consumers claiming to represent a fraud department or merchant and ask them to confirm information such as their bank account username and password, credit card or debit card data, or Social Security numbers.
- Scammers posing as a legitimate business requesting a P2P payment for a product or service.
- Scammers connecting a stolen credit card to a payment app then looking for people selling big ticket items (such as a computer, tablet, or car) online. The scammers will offer to pay for the product using the app. Once the seller accepts the payment and sends the item, they’ll soon discover that the payment sent is not to a legitimate buyer, and the money collected is removed from their account. The seller is then without either the item or the money.
- Fraudsters sending spoofed emails warning that an account is about to be suspended and that the account holder must enter their password on a spoofed webpage.
You are encouraged to stay cautious when using Venmo. You should not share your personal information and treat payments on Venmo like cash.
If you believe you're the victim of a scam, you can report it online to the Federal Trade Commission here.
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