Fraud Prevention Series: Avoiding Peer-to-Peer Payment Fraud
October 12, 2021
As contactless transactions continue to grow in popularity, more peer-to-peer payment apps are being marketed. Cyber thieves have also taken note. You can mitigate the possibility of fraud when using peer-to-peer payments by taking simple precautions.
The appeal of using peer-to-peer (P2P) payment apps is the ability to send funds instantly to friends and family compared to traditional ways that may take days. However, due to the speed of the transaction, providers have less time to review and stop the transfer if they detect a problem. This is what fraudsters try to capitalize on; they often trick victims into sending funds that are impossible to reclaim.
Most P2P app providers are working to get ahead of these scams by educating consumers about the risks involved. For instance, pop-up alerts caution users about sending funds to recipients they do not know, and the app may require users to review their payments before sending so they can check for errors and confirm details.
Other ways thieves try and gain the upper hand is to create fake IDs using illegally obtained personal identification data or stealing credentials to create imposter accounts. To combat this type of fraud, P2P providers can use artificial intelligence-powered tools to monitor for an increase in unsuccessful login attempts, and partner with financial institutions to prevent fraudsters from setting up false accounts.
MSUFCU’s Member2MemberSM P2P service is a secure, simple, and free way to instantly send money to MSUFCU members through the MSUFCU Mobile app or ComputerLineR the Credit Union’s online account management system.
It’s easy to use. Simply sign in to the MSUFCU Mobile app or ComputerLine, select the MoveMoneySM option and navigate to Member2MemberSM. To send funds, enter the member’s mobile phone number or email address to add them to your contact list. Follow the steps within Member2MemberSM to complete your transfer, and funds will be transferred instantly to your recipient.
To help prevent fraud, Credit Union members must review their payments before approving the transfer, and funds expire after seven days if they are not accepted and are returned to the sender. For more information, visit msufcu.org/m2m.
Consumers like the convenience of real-time P2P payments so making security a priority is important. Both users and providers have a role to play in reducing the chance of fraud.
Tags: Fraud Prevention Series, Security, Tips and Tricks