SmartBanking Blog

Sending Money Digitally: Safety Tips for Older Adults

               Digital payment platforms have revolutionized how we pay back our friends and family and patronize small businesses. With peer-to-peer (P2P) payment platforms, you can now instantaneously send money if you forget your wallet. However, scammers often utilize these platforms to steal your money because they know once it is sent, it is almost impossible to get it back. Older adults are particularly susceptible to this type of fraud, so let’s talk about how to use these P2P payment platforms safely.

              If you’ve heard the name Zelle, Cash App, or Venmo floating around, you should know that these are P2P payment platforms where you can send money digitally. It is much like a wire, but because it is much quicker than sending a wire, it is easier to make mistakes. Most people use these platforms to send money to friends to pay them back, to send monetary gifts to family, or even to pay for goods or services. Errors when using these platforms are, unfortunately, easy to make and quite common. Sometimes it will be because it was sent to the wrong person with a similar username. Other times the wrong amount will be sent. Worst, however, is when money is sent to someone who is a scammer. Like cash, once money is sent digitally through a payment app, it is extremely hard to recover.

               Some may look at the risks of using such apps and decide it is just not for them. However, these apps can also be very convenient for sending money to grandchildren or friends who live farther away. If you choose to use payment apps, here are some tips for safely sending money.

1. Send Only to People You Trust – Best practice is to send money only to those you have met in person and trust.
2. Be Aware of Scams – There are many scams that utilize payment platforms to receive payment. Some include imposter scams where someone may pretend to be a loved one using AI before asking you to send them money. Others are bogus businesses or government agencies who require payment via one of these apps.
3. Confirm the Recipient’s Information – Always confirm the recipient’s information and username. If they have a QR code available in the app, scan that to ensure proper payment.
4. Never Allow Someone Else Access to Your Account – There is no legitimate reason anyone but you would ever need access to your account. If someone asks you for login credentials or your verification code, DO NOT give it to them.
5. Use a Credit Card – If you do accidentally send money to the wrong person or fall victim to a scam, having a credit card linked to your P2P payment app is your best chance at recovering the funds.

Payment apps can be extremely helpful for some people but may not be right for everyone. If you are an older adult and are interested in using P2P payment apps to send money digitally, consider these safety tips. Your bank can also help you safely navigate this process.

Sources:

https://www.ncoa.org/article/sending-money-digitally-5-safety-tips-for-older-adults/