Why New York Users Are Losing Thousands Through Payment Apps

Payment apps may feel like the easiest way to send money, but New York officials just revealed why that convenience comes with a dangerous cost.

The New York Department of State’s Division of Consumer Protection issued a "consumer alert" regarding a rise in payment app scams.

New Yorkers Warned About Payment App Scams

Payment apps like Venmo, PayPal, Cash App, Zelle, and more are very convenient for New Yorkers, but they are also attractive for scammers, officials warn.

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These apps allow users to instantly transfer money to friends and family members. It's very easy and something I and many use all the time. However, it's good to know about the dangers and how to avoid getting scammed.

"Scammers are finding new ways to exploit these payment apps every day, so if you do choose to use them, make sure you follow these tips from our Consumer Protection division to keep your personal and financial information safe," NYS Secretary of State Walter Mosley stated.

Nearly $400 Million Lost In 2024

According to the Federal Trade Commission, nearly people nationwide reported nearly $400 million in losses from scams that used payment apps or services.

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Over $100 million more was lost from these scams in 2024 compared to 2023, officials say.

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Tips To Not Get Scammed Using Payment Apps

New York Department of State’s Division of Consumer Protection issued these tips to avoid getting scammed out of your hard-earned money via a payment app.

• Don’t leave large amounts of money in payment apps
• Only send money to people you know and trust
• Avoid linking to your entire bank account
• Set your account to private
• Use strong security features and settings

Another great tip is to double-check the name of the person you're sending money to. If you send it to the wrong person by mistake, you are out of that money, unless the person you sent the money to is nice and resends you the money.

While that's the nice thing to do, it's not mandatory.

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