Don't get caught in a p2p scam
Once money is transferred, it's usually gone forever!
August 16th, 2023
P2P (or Peer-to-Peer) platforms are super-convenient. But P2P scams are rampant and varied. Plus, once
money is transferred, it’s usually gone forever.
Here are five P2P scams to beware of:
1. Mystery money
In this P2P scam, a stranger “accidentally” sends the target victim money and then reaches out, wanting
their money back. The victim sees these funds in their account and returns them. Unfortunately, though,
because this money was added to the person’s account using a stolen credit card or account, the platform
flags the original transaction as fraud and removes the funds from the victim’s account.
2. Hidden credit card fraud
In this P2P scam, a fraudster purchases an item listed on a site, like Facebook Marketplace, using a
P2P service. They’ll pick up the item, or have it shipped to their home, and are never heard from again.
Meanwhile, the P2P platform will eventually recognize the funds for the purchase came from a bogus
source and will take the money back from the seller.
3. Utility scams
In this scam, a “rep” from a utility company reaches out to a target, claiming their service will be
shut off unless a payment is made immediately. The scammer insists on payment by P2P. Unfortunately,
once the transfer is made, it can be impossible to reclaim the money.
4. Password scam
In this scam, an alleged representative of a credit union will reach out to a victim by text, asking
them to approve a recent large P2P transfer from their account. A “no” response will prompt the scammer
to call the victim. Posing again as a rep of their financial institution, they’ll offer to assist in
reclaiming the allegedly frauded money. To do so, the scammer claims the victim will need to share their
login credentials. Unfortunately, if the victim shares the one-time passcode, the scammer can change the
password and send themselves money through the victim’s account.
5. Bogus receipts
Here, a scammer will insert themselves into a legitimate P2P transaction by digitally manipulating a
screenshot to make it appear as if they have completed a part of an ongoing deal and insisting you now
owe them money. In truth, though, the transaction was never completed and, if you send the money, you’ll
be sending it directly to a scammer’s P2P account.
- Only send and accept funds from people you know and trust.
- Always confirm you’re interacting with the correct person by verifying their phone number at every
stage of the P2P transaction process.
- Call the P2P platform’s customer service number directly to resolve any errors. Similarly, reach out
to MidWest America Federal Credit Union directly if you receive notification of an allegedly frauded
- Check your checking account after every P2P transaction to confirm that you’ve received the funds.
- Never share a one-time passcode with anyone.