Is the Venmo Money-Sharing App Safe to Use?
When it comes to splitting the grocery bill, Venmo makes life a lot easier. Yet when it comes to online security, how safe is your Venmo account?
Venmo, the money-sharing app ubiquitous among Millennials, has drawn in users at impressive rates due to its convenience and easy-to-use interface. Still, as its popularity grows, concerns about the platform’s dedication to security measures are growing, too. If you use Venmo or other financial apps on your device, then you’ll want to make sure your device remains safe. Enable Advanced Protection to ensure that Venmo and other apps are protected in the event of loss or theft:
How Does Venmo Work?
Venmo allows for easy money transfers between users. A credit card, debit card, or checking account is connected to each individual account, allowing users to pay others or receive payments. Venmo balances can be stored to settle future payments or else transferred to a bank account.
Though many users assume that money transfers occur immediately, the Venmo money-transferring interface operates more similarly to a check than to cash. When accounts receive a notification that the agreed-upon balance has been transferred to their account, this notification is really an indication that the amount has been scheduled to be transferred the following business day.
The Risks Posed by Venmo
Venmo faced major blow-back in 2015 due to the security breach of several accounts. Users whose accounts were breached found themselves locked out of their account without receiving any email notification that their login credentials had been changed. Once inside, hackers were able to transfer amounts within the $2,999.99 weekly limit. Since these events, Venmo has implemented multi-factor authentication when an account is accessed from a different device, with the option of adding a PIN code for extra security.
Despite these added security measures, however, risks still exist when using Venmo’s services. Users relying on Venmo should keep in mind that the app’s delayed timeline for processing money means that buyers and sellers on Venmo are vulnerable to scams. Venmo doesn’t offer buyer and seller protection in cases of fraud, making the platform nonoptimal for transacting with strangers. In addition, for those that connected their Venmo account to their bank account through a routing number (rather than a credit or debit card), a compromised Venmo means that you’ll likely have to close your bank account.
Venmo Security Features
To protect against the possibility of a major security breach to accounts, Venmo relies on both bank-level security and data encryption. Should an account be breached despite these precautions, users will only be held accountable for $50 of damages, as long as they contact Venmo about the hack within two days.