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You've probably heard whispers about Venmo scams. Despite being a convenient and generally secure way to send and receive money, it’s a favorite playground for scammers who devise clever ways to trick people out of their cash.

At Moonlock, MacPaw’s cybersecurity division, we’ve dug into the world of Venmo scams to help you stay one step ahead of scammers. Below, you’ll find the most common schemes, how they work, and ways to protect yourself.

Venmo scams and how they work

Venmo scams come in all shapes and sizes, but the goal is always the same: trick you into parting with your money. Scammers use phishing emails, fake texts, spoofed calls, or even paper checks to create believable ruses. Here’s a rundown of the most common scams and how they catch people off guard.

Venmo upgrade account scam

In this scam, you get an email claiming your Venmo activity becomes limited until you pay a one-time fee to “upgrade.” It might look and sound official, but it’s pure fiction. The scammer will happily take your $250, or however much they think they can squeeze out of you, and disappear.

Venmo x Facebook Marketplace scam

Facebook Marketplace is a treasure trove for secondhand finds, but scammers are lurking there, too. They’ll post fake listings and insist you pay upfront via Venmo. Once the money’s sent, the item you’re expecting will never arrive, and neither will the refund.

Venmo support scam

If someone claiming to be from Venmo calls or texts you, proceed with caution. Scammers spoof phone numbers to make them look legit and then ask for your login credentials or account details. Once they have that information, they’ll drain your account in no time.

Accidental transfer fraud

A scammer uses a stolen credit card to send you money, then claims it was an accident, and asks you to refund it. You oblige, thinking it’s harmless, but when the stolen card is flagged, the original payment gets reversed. At the end, you end up without the money you “refunded.”

Phishing scams

These scams arrive as urgent emails claiming your Venmo account has an issue that needs immediate fixing. The email includes a link to a fake website designed to steal your credentials or infect your device with malware.

Fake prizes

You’ve won something amazing! All you have to do is pay a small fee via Venmo for shipping. Spoiler alert: there’s no prize, and your shipping fee goes straight into the pocket of scammers.

Overpayment scam

You won’t believe it, but scammers can even send you a paper check for this one. They pay you in exchange for a purchase or a service, but the amount is more than you requested. Then scammers demand that you refund the difference via Venmo. Once you do, the original payment is reversed and scammers keep your refund for good.

Does Venmo have built-in protection?

Unfortunately, Venmo doesn’t offer much recourse if you’ve been scammed. Once the money is sent, it’s out of your hands unless the recipient willingly refunds it. You can report scams through Venmo’s Help Center, but the chances of getting your money back are slim. 

To be on the safe side, it’s better to enable security features like Face ID and PIN codes to lock strangers out of the app. You can also turn on two-factor authentication on your account to ensure that no one uses your account other than you.

Another option is to turn on private mode, so only your friends and connections will see your account. This way, scammers will have less personal information about you to use in social engineering tactics.

Signs of Venmo fraud

Scammers are crafty, but they often follow predictable patterns. Here’s how to spot the red flags.

A stranger contacts you

If someone you don’t know emails, calls, or messages you claiming to be from Venmo, be cautious. Venmo rarely initiates contact and never asks for personal information.

A sense of urgency

Scammers thrive on panic. Their messages are designed to make you act fast and without thinking by emphasizing urgency or danger.

Spelling and grammar mistakes 

Professional companies rarely send messages with typos or awkward phrasing. Sloppy writing is often a giveaway of a scam.

Requests for personal information or money

Every scam has a purpose, and it usually comes down to one of two things: stealing your personal information or taking your money. If someone asks for anything along these lines, consider it a glaring red flag.

Final thoughts

Scams can be unsettling, but a little caution goes a long way. Keep an eye out for suspicious messages, links, and calls, and always double-check before sending money or sharing personal information. The best way to protect yourself is to stay vigilant and take proactive measures:

• Turn on two-factor authentication for an extra layer of security. Features like Face ID, Touch ID, or PIN codes can also help keep your account locked down.
• Never send money to strangers. If someone you don’t know requests money, think twice before sending it. Scammers rely on impulsive decisions.
• Maximize your privacy and security settings to limit who can see your activity and account information.