The money transfer app Venmo can come in handy when you need to pay a coworker back for lunch or send money to friend. Just be wary when using the app with someone you don't know. Scammers are exploiting it and scamming sellers.
How the Scam Works:
You are selling a big ticket item (such as a computer, tablet, or car) on Craigslist or another online service. You find an interested buyer, and he or she is ready to make the purchase. But rather than pay with cash, the buyer suggests sending money through Venmo. You've used the payment app successfully to transfer money to friends, so you agree.
At first, everything seems fine. You get an alert from Venmo that the buyer sent the money, so you hand over the item. However, a few days pass, and you notice the funds never appear in your account.
It turns out you've been scammed. Transfers in Venmo take several days to process. Scammers take advantage of this by setting up transactions and canceling them before they go through. By the time victims realize they’ve never received the money, the scammers are long gone.
How to Avoid a Venmo Con:
Protect yourself when paying with Venmo by following this advice:
For More Information
To report a scam, go to BBB Scam Tracker (bbb.org/scamtracker).