Think Before You Send: Using Peer-to-Peer Payment Apps Safely

Peer-to-peer (P2P) payment apps make it easier than ever to send money to family and friends. Whether you're splitting a dinner bill, paying a babysitter, or reimbursing a neighbor, these tools offer a fast and convenient way to transfer money.

Unfortunately, scammers know that convenience can make people let their guard down.

A growing scam involves fraudsters asking people to use P2P payment apps to pay for items advertised online through marketplaces, classified sites, or social media. The seller may promise to ship the item once payment is received, but after the money is sent, the product never arrives and the seller disappears.

Because most P2P payment apps are designed for transactions between people who know and trust one another, they often don't provide the same fraud protections that may be available with credit card purchases. Once money is sent, recovering it can be difficult or even impossible.

How to Use P2P Payment Apps Safely

To help protect yourself from fraud, follow these best practices:

Only Send Money to People You Know and Trust

P2P apps work best when you're paying family members, friends, or trusted service providers. Think of them as a digital version of cash.

Double-Check Recipient Information

Before hitting "send," verify that the email address, phone number, or username belongs to the intended recipient. A simple typo could send your money to the wrong person.

Avoid Using P2P Apps for Online Purchases From Strangers

If someone insists that you pay through a P2P app for an item being sold online, consider it a red flag. Scammers often prefer payment methods that are difficult to reverse.

Pause Before Sending

If a transaction feels rushed, unusual, or too good to be true, take a moment to verify the details. A few extra seconds could help prevent a costly mistake.

The Bottom Line

Peer-to-peer payment apps are a great tool for sending money to people you know and trust. But when it comes to online purchases from unfamiliar sellers, it's best to choose payment methods that offer stronger consumer protections.

Staying cautious and knowing the risks can help keep your money where it belongs: in your account.

Learn more about protecting yourself from common fraud and scam tactics by visiting Kitsap Credit Union's Fraud & Security Resources.