Person to person digital payment apps like Venmo, Zelle and Cash App are convenient, but are they safe? The Consumer Financial Protection Bureau says not very.
A report recently released by the bureau states more than 5,200 complaints were filed between May 2020 and April 2021. Since 2017, when the agency first began accepting complaints, they’ve received 9,277.
Folks are using these apps to pay for everything from babysitters to lawn services. A friend needs to borrow a few dollars, you can get the money to them in just a few minutes. It’s like handing someone cash.
But with the convenience comes the risk. These transactions for the most part are instant and irreversible.
The report states: “The three most common complaints involving digital wallets are problems managing, opening, or closing accounts; problems with fraud or scams; and problems with transactions (including unauthorized transactions).”