Zelle Fraud Reveals P2P Vulnerabilities
Payment Integrated Apps
Peer-to-peer payments have evolved quickly thanks to its convenient way to move your money. Every major app wants a piece of the payments pie with integrations being emphasized by the major players like Zelle, Venmo, Paypal, Facebook Messenger, Apple iMessage, Gmail, and many more.
Zelle recently went under fire for a couple of fraud scenarios that left their customers vulnerable. Unlike the financial institutions and B2C that have evolved a long way to ensure consumer protection, P2P payments have not matured. When your account is hit by fraudulent charges, the bank is quick to replace those funds and help right any wrong that took place. The reimbursement of stolen funds is unfortunately not guaranteed in the peer-to-peer setting.
Let’s say a scammer tries to sell you concert tickets. You transfer the funds for the exchange, and after the money is sent, you are “ghosted,” meaning you never to see those tickets and your money ever again. Does the payment app you utilized have a responsibility to protect your money?
With the recent news regarding Zelle’s vulnerabilities to fraud, it shows how far they still need to grow to offer complete customer security. Implementing systems for added security like two-step authentications or payment notifications is a good step in the right direction. Without a safety net protecting these payment transfers, they will continue to be targeted by fraudsters always testing blind spots in payment regulation.
Does your business need a secure payments partner to power your transactions?
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