Protecting Yourself from Peer-to-Peer (P2P) Fraud
Peer-to-peer (P2P) payment apps and services have become increasingly popular in recent years, providing a convenient way to transfer money between individuals. However, this popularity has also led to a rise in P2P fraud. In this post, we’ll explore what P2P fraud is, how it works, and how you can protect yourself from becoming a victim.
What is P2P Fraud?
P2P fraud occurs when a fraudster uses a P2P payment app or service to transfer money to their own account by posing as a legitimate user. The fraudster may use various tactics to achieve this, such as social engineering or account takeover.
Social engineering involves the fraudster using psychological manipulation to trick the victim into giving up their personal information or transferring money to the fraudster’s account. For example, the fraudster may pose as a friend or family member in need of urgent financial assistance.
Account takeover, on the other hand, involves the fraudster gaining access to the victim’s P2P account by stealing their login credentials or using malware to take control of their device. Once the fraudster has access to the victim’s account, they can transfer money to their own account or make unauthorized purchases.
Protecting Yourself from P2P Fraud
To protect yourself from P2P fraud, there are several precautions you can take:
- Use strong, unique passwords and two-factor authentication to secure your P2P account. Passwords should be long and should include an uppercase letter, lowercase letter, number, and special character. Using long sentences or made-up character combinations can be most effective.
- Only send money to people you know and trust and verify their identity before sending money. Do not rely on Caller ID as fraudsters can replicate this information.
- Beware of unsolicited requests for money or personal information, especially if they come from someone claiming to be a friend or family member in need. Requests that are “urgent” or have a time expiration are typically a scare tactic by fraudsters and should raise a red flag.
- Keep your device and apps up to date with the latest security patches and anti-virus software.
- Regularly review your P2P transaction history and report any suspicious activity to the bank immediately.
- Do not click on links in email or text messages without verifying their accuracy. Fraudsters are creating fake websites that look very similar to the legitimate website. Look closely for misspellings in the web URL or text messaging service numbers. As a reminder, our web address is https://www.fmbank.org/ and text number is 662265 (MOBANK). The Farmers & Merchants Bank will also never contact you by phone or email requesting you to change your passwords.
P2P fraud is a growing problem that can have serious financial consequences for victims. By taking the precautions outlined in this post, you can reduce the risk of falling victim to P2P fraud and keep your finances secure. Be vigilant and stay informed to protect yourself from this type of fraud.