Ten Tips to Protect Against Peer-to-Peer Payments Fraud
posted on Thursday, August 24, 2023 in SHAZAM Blog
In an increasingly digital world, peer-to-peer (P2P) payment methods simplified how many individuals handle financial transactions. P2P apps made it convenient to pay friends and family, split bills and conduct business transactions with the click of a button. However, with the convenience comes the risk of becoming a victim of fraud.
Consider and share the following tips to protect yourself and your accountholders from P2P payment fraud:
1. Know who you’re sending money to: One of the fundamental rules of P2P transactions is to engage only with individuals you know and trust. Never transact with strangers, especially for large sums of money. Stick to established connections to reduce the chances of falling prey to fraudsters.
2. Use secure platforms: Opt for well-known and reputable P2P payment platforms offering robust security features. These platforms invest heavily in encryption and fraud detection technology to protect sensitive financial information.
3. Set strong privacy settings: Most P2P apps allow you to control who can see your transactions. Adjust your privacy settings to limit the visibility of your transactions to only your trusted contacts.
4. Avoid public Wi-Fi: Never conduct P2P transactions over public Wi-Fi networks, as they are unsecure and vulnerable for hackers to compromise. Use secure and private networks to ensure your financial information remains protected.
5. Enable two-factor authentication: Enabling a second form of verification, such as a text message or email, before allowing access to your P2P account gives you an extra layer of security.
6. Verify contacts: Always double-check the recipient's username or phone number before sending money. A single typo can lead to sending funds to the wrong person, and getting your money back can be challenging.
7. Beware of scams: Fraudsters often use social engineering tactics to trick you into sending them money. Be cautious of requests for urgent payments, especially if they come from unfamiliar contacts.
8. Regularly monitor your account: Keep a close eye on your P2P payment account and regularly review your transaction history to spot any unauthorized or suspicious transactions.
9. Keep software updated: Ensure that your device's operating system and the P2P app are up to date. Software updates often contain security patches that protect against known vulnerabilities.
10. Educate yourself: Stay informed about the latest scams and fraud tactics. Knowledge is the best defense against falling victim to evolving threats. If you become a victim of P2P fraud, notify the P2P platform and your financial institution immediately. Then report it to the FTC at reportfraud.ftc.gov.
Protect yourself, your financial institution and your accountholders by staying vigilant and informed about P2P payment best practices.
Resource:
FTC
SHAZAM, Inc. and ITS, Inc. provide this blog for general informational purposes only. Our blog may be shared by a direct link wherein the content remains as originally presented and has not been altered. SHAZAM, Inc. and ITS, Inc. assume no responsibility for errors or omissions in the contents on the blog. By using this blog, reader agrees that the information published does not constitute nor is a substitute for legal advice which should only be sought from a qualified, licensed attorney.
Comments
comments powered by