Scammers are becoming increasingly intelligent and are developing new ways to access consumer funds and personal information. Here at CTFCU, our biggest priority is the financial wellness of our members, and that includes keeping them and their money safe. To ensure member safety, we put together this series to help you recognize the signs of fraud and ways to protect yourself.
Up next, Peer to Peer (P2P) Payment Systems.
Peer to Peer (P2P) Payment Systems
Peer to Peer (P2P) payment systems are a convenient way to transfer funds between two parties electronically. While this is becoming a fast-growing method to split a dinner bill or repay someone for a purchase, it poses a security risk to the consumer. Conducting transactions through these systems becomes even riskier when the other party is unfamiliar. If you choose to use P2P, be sure you are sending money to someone you personally know.
Legitimate businesses should not request payment via P2P platforms. If a merchant asks you to pay with this method, don’t do it! They should be able to accept payments through traditional methods such as cash, credit/debit card, certified check, or money order. Most P2P providers will not compensate users for funds lost through a fraudulent transaction. Also, keep in mind that all CTFCU credit and debit cards are protected from legitimate fraud by Visa’s Zero Liability Policy®. However, the policy may not cover funds lost through P2P transactions. Carefully review the system’s terms and conditions before signing up.
Remember that consumers may incur processing fees when utilizing money transfer apps. Consider using other payment methods, like cash, the next time you decide to move money amongst friends.