DFR Warns Consumers About Growing Payment App Scams (Photo) - 09/02/26

Salem – Mobile payment apps provide a convenient way to send, receive, and manage money using a smartphone. However, consumers should be aware that scammers are using these services to steal money and gain access to financial accounts. Popular payment apps include Venmo, Cash App, Zelle, and PayPal. Many mobile payment apps are connected to a consumer’s bank account, debit card, or credit card, making consumers’ accounts a target for fraudsters.

The Oregon Division of Financial Regulation (DFR) is reminding consumers to be cautious when receiving unexpected payments or when someone contacts them claiming there is a problem with their account.

Beware of “payment sent by mistake” scams

In this scam, a stranger sends money to a consumer through a payment app and then contacts the consumer claiming the payment was sent by mistake. The scammer asks the consumer to send the money back as a new payment. Cybercriminals may use stolen credit card or financial account information to make the initial payment appear legitimate. If the consumer sends the money back, the original fraudulent payment may later be reversed, leaving the consumer responsible for the money they sent to the scammer.

DFR advises consumers:

• Never exchange payments with people you do not know.
• If you receive a payment from someone you do not know, directly contact the payment app’s customer support. Customer support can help determine whether the payment is legitimate and explain how to properly reverse or address the transaction.
• Do not communicate with the person who sent the unexpected payment. Scammers may use emotional stories or pressure tactics to convince consumers to send money.

Watch out for fake payment app representatives

Scammers may also impersonate customer service representatives from payment apps. They may call or text consumers claiming that an unauthorized transaction has occurred or that someone is attempting to access their account. The scammer may say they need to “secure” the account and ask for sensitive information, including a password or a verification code sent to the consumer’s phone.

If you receive a call or message like this:

• Never provide a verification code sent to your phone to anyone.
• Never share your password or other account credentials with someone who contacts you unexpectedly.
• Do not click on links or use phone numbers provided in unsolicited messages.
• Contact the payment app directly using the official app or website to verify whether there is actually a problem with your account.

Legitimate customer service representatives will never ask for a verification code that was sent to the consumer’s phone to authenticate an account. Taking a moment to stop and verify an unexpected payment, phone call, or text can help prevent consumers from losing money to fraud.

Imposter scams

Fraudsters try to replicate a profile picture on a fake account to impersonate your friend, co-worker, potential new employer, landlord, or even a love interest. They pretend to be someone in your social circle and request money.

What to do if this happens to you:

• Contact the real person outside of the payment app to make sure it came from them or call them on the phone number you have. The fraudster may provide you with a new number, but don’t fall for it.
• If you don’t know the person, never give money to someone you haven’t met in person.
• Check the creation date and transaction history. If it’s a brand new account with no transaction history, it might be a scam.

“Payment apps make it easier than ever to move money, but that convenience can also make it easier for scammers to target consumers,” said DFR Administrator TK Keen. “Scammers know how to create a sense of urgency and trust, whether they claim a payment was sent by mistake, pretend to be a customer service representative, or impersonate someone you know. The best protection is to stop, verify who you are dealing with, and never send money until you are certain the request is legitimate.”

If you believe you have been a target of a financial scam, contact DFR’s consumer advocates at 1-888-877-4894 or dfr.financialserviceshelp@dcbs.oregon.gov.

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About Oregon DFR: The Division of Financial Regulation protects consumers and regulates insurance, depository institutions, trust companies, securities, and consumer financial products and services. The division is part of the Department of Consumer and Business Services, Oregon’s largest consumer protection and business regulatory agency. Visit dfr.oregon.gov and dcbs.oregon.gov.