October 16, 2023 • 4 mins
Thanks to peer-to-peer (P2P) payment apps, sending and receiving money has never been more convenient: All you need is a smartphone and an app. These mobile payment apps make it easier than ever to split the check or send money to loved ones, but they’re also an easy target for fraudsters.
When you make a P2P payment, the money is immediately deducted from your balance and credited to the recipient. You can dispute a credit card charge, cancel a bill payment, or stop payment on a check, but you generally don’t have the same option with mobile payment apps1. This makes P2P payments attractive to fraudsters: money they receive from you can be in their accounts within a few moments — and it might be difficult for you to get it back.
Think of mobile payments like cash. If you pay someone with cash but never receive the goods or service, your money is gone. The same is true for P2P apps — most financial institutions will not reimburse you for authorized payments.”
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1 Consumer Financial Protection Bureau, “Helpful tips for using mobile payment services and avoiding risky mistakes”