Protect yourself when sending someone money

Published September 8, 2022 | By Glenn

Six tips to protect yourself when sending someone money by Schwab.com

With peer-to-peer payments (P2P), you can transfer money to someone from your bank account, debit card, or credit card using a website or mobile apps such as Zelle, Cash App, PayPal, or Venmo. P2P payments can also include your financial institution’s apps, such as Schwab Mobile. While P2P payments are popular and convenient, understanding the risks can help you avoid becoming a victim of scams and fraud.

How do scams and fraud differ?
Fraud involves someone accessing your account without your permission and completing unauthorized transactions. A scam involves being tricked into authorizing a transaction or sending a payment. It’s important to remember the difference, as the same protections do not always apply to both.

Ways to protect yourself

Pay it safe: Since most P2P apps don’t allow you to cancel a transaction, treat payments like cash, and only send funds to those you know and trust.
Take your time: If someone is pushing you to act quickly with a P2P payment, it could be a red flag.
Use your security settings: Enable settings within the P2P applications, such as multifactor authentication (also known as two-factor authentication),
Let your financial institution help: Fraud alerts can automatically notify you of activity, and always contact your financial institution immediately if you suspect something is wrong.
Be aware of phishing: Fraudsters might try to access your account by posing as your financial institution or a P2P company. If someone calls you unexpectedly and claims to be from your financial institution, it is best to hang up and call your financial institution at the number printed on your statement rather than the number that called you.
Use unique passwords: Use different passwords for P2P apps and other sites, avoid sharing your passwords with others, and consider a password manager tool if you have trouble remembering passwords.

Check Schwab’s online resources

For more security tools and steps, you can take, visit SchwabSafe^® to view our latest resources and learn more about how you can safeguard your personal information and assets. And while you’re at it, check out our Security Knowledge Center.

Note: These tips are appropriate for any financial institution, Glenn

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