The fraudulent activity of Venmo, Zelle, and Cash App is making consumers vulnerable and draining significant amounts of money from bank accounts, according to Manhattan District Attorney Alvin Bragg. In letters to the companies responsible for these financial apps, he has demanded increased protections.
As the use of peer-to-peer payment services increases, the district attorney noted that frauds and scams are also on the rise, and he called on Venmo, Zelle, and Cash App to implement additional security measures such as transaction limits, secondary verification requirements, and better monitoring of unusual activity. He emphasized the need for better protection for their customers.
Despite a police report and video evidence, a woman named Alejandra was scammed in SoHo when two teenagers approached her to donate money via Zelle. This case highlights the necessity for increased security and protection for consumers.
The district attorney also requested meetings with the companies to discuss the rising illegal behavior due to insufficient security measures associated with their software and business policies.
Both PayPal and Early Warning Services, LLC, the network operator of Zelle, responded with statements emphasizing their commitment to consumer safety and security. They outlined various measures in place to protect their customers and reduce fraudulent activities, but the district attorney’s concerns remain.