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.

Stay Safe

• 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 account. 
• Check your checking account after every P2P transaction to confirm that you’ve received the funds. 
• Never share a one-time passcode with anyone.