HOUSTON – Sending and receiving money has never been easier. With companies like Venmo, Zelle, Cash App and Paypal, you can pay for just about anything online with the click of a few buttons. But how safe is your money when you use these apps?
KPRC 2 Investigates has what you need to know before you send another payment:
Last year, 18 million Americans were scammed through mobile payment apps or digital wallets. They lost a collective $130 million. We’ve done several stories warning people about potential scams using payment apps. Here are just a few:
In all of these cases, the people targeted were aware of scams and thought they were being careful. It can happen to anyone. Here’s what you can do to protect yourself:
1. Link a credit card to payment apps, not bank account
Unlike your credit or debit card, mobile payment apps don’t have as much fraud protection. So when you’re a victim of fraud, it is nearly impossible to get your money back. It’s why experts recommend linking your payment app to a credit card, not a bank account.
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Credit cards do have more fraud protections. Cash App, Paypal and Zelle all allow you to link accounts to credit cards but when you do, they tack a 3% processing…
