Protect your money: Oregon officials warn against mobile payment scams

SALEM, Ore. (KTVZ) -- The Oregon Division of Financial Regulation is warning consumers to use caution when sending and receiving money through mobile payment applications due to widespread scam activity. Fraudsters are targeting users on popular platforms including Venmo, Cash App, Zelle and PayPal to steal money and compromise personal financial accounts.

Because many mobile payment applications connect directly to a consumer's bank account, debit card or credit card, these services have become primary targets for financial fraud. State regulators emphasized that scammers rely on high-pressure tactics and false claims of account issues to manipulate victims.

TK Keen, administrator of the Oregon Division of Financial Regulation, urged consumers to pause before responding to unexpected transactions or messages.

“Payment apps make it easier than ever to move money, but that convenience can also make it easier for scammers to target consumers,” Keen said. “Scammers know how to create a sense of urgency and trust, whether they claim a payment was sent by mistake, pretend to be a customer service representative, or impersonate someone you know. The best protection is to stop, verify who you are dealing with and never send money until you are certain the request is legitimate.”

One common tactic involves a “payment sent by mistake” scheme, where a stranger transfers funds to a consumer and asks for the money to be returned as a new transaction. Cybercriminals often use stolen credit card or bank account information to make the initial transfer appear legitimate. When the original fraudulent payment is eventually reversed, the consumer remains responsible for the money sent to the scammer. State officials advise users never to exchange payments with strangers, refrain from communicating directly with sender accounts and contact the payment app's customer support directly to address unexpected deposits.

Fraudsters also impersonate customer service representatives from payment applications through unsolicited calls or text messages. They often claim that an unauthorized transaction has occurred or that an account security breach requires immediate action. During these interactions, scammers request sensitive credentials, such as account passwords or verification codes sent to the consumer's phone. The state agency noted that legitimate customer service representatives will never ask for a phone verification code to authenticate an account and consumers should use official websites or apps to verify account issues.

In imposter scams, fraudsters replicate profile pictures from real individuals to pretend to be friends, co-workers, landlords, potential employers or romantic interests. Consumers receiving unexpected payment requests from someone in their social circle should contact that person directly outside the payment app using an established phone number. Additionally, reviewing an account's creation date and transaction history can help spot fraud, as newly created accounts without prior transactions often indicate scam activity.

Consumers who believe they have been targeted by a financial scam can contact the Oregon Division of Financial Regulation's consumer advocates by calling 1-888-877-4894 or emailing dfr.financialserviceshelp@dcbs.oregon.gov.