Money transfer apps make it easy to send and receive money, but is Venmo secure? That may be your most pressing concern about utilizing this money transfer software. Understanding Venmo's security features and how they work is beneficial if you want peace of mind when it comes to your finances.
Is Venmo a secure payment method
Your bank account and/or credit card accounts are linked to your Venmo account. This is how you can send and receive money from friends, relatives, and anybody else who has downloaded the app. The Venmo platform uses an application programming interface (API) to process transactions between users giving and receiving money. Venmo, according to its website, uses encryption technologies to secure and protect its users' personal and financial data. The company's security procedures were once advertised as "bank-grade," but that language has since been removed from the website. User information, according to Venmo, is held on servers in secure places. Some common Venmo scams involve someone making a payment with a stolen credit card or debit card, or after you've sent them money, someone making a false claim that the payment was never made. So, at first glance, Venmo appears to be safe. However, it is not without flaws. It's likely that if someone gets their hands on your PIN or account login details—and you haven't set up multi factor authentication—they'll be able to use the app to steal money from your bank account.How can I make my Venmo account more secure
By setting up multi factor authentication and creating a PIN code in the app, you may add an extra layer of security. When a PIN is enabled, it must be input each time the app is launched to gain access. If your device supports it, you can use a PIN code in conjunction with fingerprint identification. Multifactor authentication is a two-step verification technique that requires you to provide a unique code in order to gain access to your account. Venmo accomplishes this by sending you a unique code that you must enter in order to log in. You can freeze your Venmo account from your phone if you lose it or fear someone is trying to access it. You can delete the session associated with your phone from your Venmo. settings on a laptop or other mobile device. This logs your device out of the app automatically. Due to Venmo's social-sharing capabilities, you may mistakenly reveal payments, recipients, and payment reasons to anybody on the internet. Check your default privacy settings to ensure that payment visibility is under your control.How to Use Venmo Without Losing Money
When using Venmo (or any other money transfer app) to send and receive dollars, there are a few things you can do to maximize your safety. To protect yourself and your account, follow these guidelines.1. Develop a One-of-a-Kind Password
When creating your Venmo account password, avoid using easy-to-guess passwords that are easy to guess. Use a mix of upper and lowercase characters, numbers, and special symbols to create your message. Consider employing a unique and uncommon acronym or phrase instead of a complete word, which may make it more difficult for a hacker to recognize. A password manager could also be useful.2. Enable multi-factor authentication and PIN protection
These two procedures take only a few minutes to do, but they can help protect your Venmo account if your phone is stolen or lost. You should also set up a password or lock for your phone if you don't already have one.3. Don't use debit cards to link credit cards
Venmo lets you attach credit and debit cards to your account and utilize them as payment options. In terms of security, a credit card is preferable to a debit card since credit cards have more legal protections against fraud than debit cards. When you pay with a credit card, you'll pay a 3% fee plus your issuer's possible cash-advance fee.4. Deal exclusively with reputable payers and/or payees
Venmo instructs users to only transfer and receive money from friends and family they know and trust, which should go without saying. Accepting payment from someone you don't know or transferring payment to someone you don't know might be risky The Wall Street Journal reported that Venmo reportedly lost $40 million in the first three months of 2018 owing to bogus payment transactions handled through the app, which it obtained and analyzed internal records from Venmo's parent firm, PayPal. , You can cancel payments to new Venmo users who don't yet have active accounts if you're concerned about fraud.5. Use push notifications to keep track of Venmo account activity
Setting up alerts might help you stay on top of your account and keep track of when money comes in and goes out. These can be found by going to "Settings," then "Notifications." You'll receive email notifications if a login attempt was made, as well as payments and charges, but you'll also receive push and text notifications for payments received, payments sent, and more.6. Do not use public Wi-Fi
If you're transferring or receiving money using Venmo outside of your house, be sure you're doing so over a secure Wi-Fi network. If hackers gain access to a public Wi-Fi network that isn't password-protected, they may be able to access your account information.7. Don't stay logged in for too long
It's not always easy to remember to log out of Venmo after each session—go to "Settings" and then "Sign Out" in the app—but doing so stops your session and reduces the chances of your information being stolen. Furthermore, never give your phone to someone you don't trust without your permission, especially if your app is logged in. Someone may ask to borrow your phone, and while you aren't looking, they will open your Venmo account and transfer money to themselves.Final Thoughts
While Venmo is generally safe, any time you transmit money electronically, you're taking a chance. Being aware of potential security issues and taking steps to protect yourself can lessen the chances of losing money using Venmo or another financial app.Frequently Asked Questions (FAQs)
Is it safe to link my bank account to Venmo
Venmo claims to protect your transactions and account information with encryption. You can also add an extra layer of protection by enabling multi factor authentication. If you're still worried about security, you can connect Venmo to a credit card instead of your bank account (ideally one with no fraud liability).Is it safe to retain a certain amount of money on Venmo
You can keep a balance on Venmo, but it's usually better to move your money to your bank account. Unless you transferred money to your Venmo account via direct deposit, performed remote check capture, or purchased cryptocurrencies, the money in your Venmo account is not FDIC-insured.