If a stranger sends you money on Venmo, the natural reaction is to wonder why. Most people assume that it's a mistake. Unfortunately, most of the time, there isn't anything accidental about it.
A popular Venmo scam starts with an accidental payment and is soon followed up with a message asking for the money to be returned.
If you've received such a payment, the last thing that you should do is worry about the sender. It turns out that giving money to strangers can be surprisingly profitable.
Why Is a Stranger Sending You Money?
The "accidental" payment scam is simple but effective. A criminal sends money to a stranger on Venmo. They then contact the stranger and ask for the money back.
They will claim to have sent the money by accident and will appeal to the victim's sense of right and wrong. The victim won't be able to refund the accidental payment, so they will have to make a new transaction to send the money back.
Once the victim returns the money, the criminal will withdraw it as quickly as possible.
A few weeks later, the victim will check their account and find that the initial payment has been reversed. The victim has now lost the amount of the refund.
How Does the Scam Work?
Like many online wallets, Venmo doesn't offer fraud protection. This makes it appear like all transactions are permanent.
Most of the time, this is true. But, thieves get around this rule by using stolen credit cards. If a transaction is fraudulent, it will be reversed. And, this is what leaves the victim out of pocket.
Usually, this takes a few weeks, i.e. the amount of time it takes for the cardholder to notice the charge. And, by that time, the thief has abandoned their Venmo account.
The owner of the stolen card gets their money back, the thief has withdrawn theirs, and the only victim is the person who received the stolen money in the first place.
Why Is the Scam Effective?
The scam is effective because most people want to do the right thing. While many scams rely on the victim wanting easy money, this one relies on the victim being a good person and not wanting to profit off another person's misfortune.
It also relies on a plausible story. Payment apps make it easy to send money without entering much information about the recipient. It is, therefore, not difficult to send an accidental payment. Most people who use such apps have feared doing exactly that.
Venmo also doesn't help the situation. The scam has been going on for a few years now and has been widely discussed online. Despite this fact, if you visit the help section on the Venmo website, you'll be told to send the money.
What Payment Apps Are Involved?
The accidental payment scam primarily happens on Venmo but variations of the scam also occur on other payment apps, such as Zelle.
Zelle is different from Venmo in that it doesn't allow you to connect a credit card. The idea behind accidental Zelle payments, however, is the same.
The person sending the accidental payment is using money that doesn't belong to them. And, the purpose of doing so is to exchange that stolen money for a new payment that cannot be reversed.
At this point, it doesn't matter what payment app you use. If a stranger gives you money for no reason, it should be greeted with suspicion.
What Should You Do if You Receive Money?
If you receive money from a stranger, the best thing to do is ignore it. You will usually be contacted almost immediately and you should ignore that, too.
It's important to note that the people who carry out these scams are often professionals, i.e. this is their job. They are usually talking to multiple people at the same time. And, they know exactly what to say to convince you to refund the money. It should all be ignored.
Eventually, the transaction will be flagged as fraudulent and the money will be removed from your account without you doing anything.
What if the Person Is Telling the Truth?
While the odds of somebody actually sending money to the wrong person are very low, it does happen. The scam wouldn't be effective if the lie being told didn't occasionally happen in reality.
If you believe this to be the case, you still shouldn't send the money. But, there's nothing stopping you responding to their message, explaining the scam and asking them to contact Venmo.
Can the Victim Get Their Money Back?
After finding out that they've been tricked, the victim will usually contact Venmo or their bank. Unfortunately, it usually isn't possible to get a refund.
The perpetrator of the attack is anonymous at all times. And, while the victim was obviously tricked, they still sent the money to the thief voluntarily.
Why Venmo Shouldn't Be Used With Strangers
If you're wondering how often stolen credit cards are used on Venmo, the answer is very often. The exact same technique is often used to make fraudulent payments for items being sold on popular marketplaces, such as eBay.
This creates a situation where the seller believes that they've been paid, ships the item, and then the payment disappears.
Venmo is very useful for sending payment to friends but there's a reason that it should never be used with strangers. The lack of fraud protection means that it's a popular choice for all types of scams.
Has This Happened to You?
If somebody tells you that they've sent you money accidentally, it's natural to want to return it. Unfortunately, the majority of people who follow this impulse end up getting ripped off as a result.
If you've received money from a stranger, and you're still not sure what to do, the best action is to contact Venmo directly. If the person you're talking to has really made a mistake, it's the platform's responsibility to fix it; not yours.