P2P Payment Scams: How Criminals Use Payment Apps to Steal Money

Like Pay People inside NEBAT's online and mobile banking, Venmo, PayPal, Cash App, and Zelle are fast and convenient, but they were designed for sending money to people you know and trust - not strangers, investment opportunities or unexpected payment requests.

Unfortunately, scammers know that once money is sent through a P2P payment app, it can be difficult or impossible to recover.

Why Scammers Use P2P Payment Apps

Think of sending money through a P2P app like handing someone cash.

Once the payment is sent:

• It may be difficult to reverse.
• The recipient may be hard to trace.
• Scammers can quickly move money elsewhere.

P2P scams are especially risky because payments often appear to be authorized by you. Scammers use urgency, trust or confusion to convince you to send money yourself.

Common P2P Scams

Investment Scams

Scammers may advertise "guaranteed" returns, cryptocurrency opportunities or exclusive investments. Victims are often shown fake profits and encouraged to keep sending money.

A major red flag is being asked to fund an investment through a payment app.

Romance Scams

A scammer develops an online relationship and eventually asks for financial help.

Requests often involve travel expenses, medical emergencies or personal hardships.

Payment App Impersonation Scams

Criminals may pretend to work for Venmo, PayPal, Cash App or Zelle and claim there's an issue with your account. Spoofed texts, phone numbers and emails make the impersonation easy to get away with.

Their goal is to convince you to send money, share login credentials or provide security codes.

Remember: legitimate companies will not ask you to share verivification codes, send money to yourself or move funds to a "safe account."

Pause and Verify Before You Pay

Before sending money, ask yourself:

• Do I know and trust this person?
• Do I know for certain this is the real P2P company or bank making the request? Have I verified it independently of the communication received?
• Am I being pressured to act quickly?
• Does this involve an investment or someone I've only met online?

If any answer causes hesitation, stop and verify before sending funds.

Looking for a Better Way to Send Money?

National Exchange Bank & Trust customers have access to Pay People, our person-to-person payment service built directly into online and mobile banking.

Unlike standalone payment apps:

• No extra app is required.
• Your payment activity stays within your banking relationship.
• Funds remain at a federally insured financial institution.
• Local support is available if questions arise.

Before You Hit Send, Give Us a Call

If you're unsure about a payment request, contact us before sending money. And remember, we will NEVER ask for your Exchange OnLine / mobile app verification code or cvv number on the back of your card.

Whether it's an investment opportunity, an online relationship or a message claiming to be from a payment platform, we're happy to help you identify potential red flags.

Sometimes a five-minute conversation is all it takes to stop a scam.