Millions are falling for these 5 payment-app tricks. Here’s the easy way seniors can outsmart them every time!

Some folks swear by apps for sending money, others only use them when they absolutely have to—but either way, digital payments have become impossible to ignore.

Whether you’re splitting the tab after tacos, sending birthday cash to your grandkids, or paying your dog walker without fumbling for bills, they’ve become second nature to tap, send, and move on. But here’s the catch: as people get more comfortable with digital wallets, scammers are getting more creative and more aggressive.

Venmo scams aren’t just rare flukes; they’re calculated traps designed to exploit trust, urgency, and everyday habits. From fake payment requests to impersonation tactics that feel eerily convincing, these scams are evolving fast.

At The GrayVine, we believe knowledge is your best defense. So if you use Venmo (and let’s be honest, most folks do), it’s time to get smart, stay alert, and learn the five most common scams, and the simple ways to protect your money before it’s too late.

Why seniors have become prime targets​

The numbers are staggering and they're getting worse.

In 2024, financial scams targeting older adults reached alarming new heights, with reported losses climbing to $4.8 billion—an unsettling jump from the $3.4 billion recorded the previous year.

What’s even more troubling is the steep rise in individual impact: the average amount lost per older adult soared to $83,000, underscoring just how devastating these schemes can be.

Scammers often zero in on older adults, viewing them as easy marks due to factors like retirement savings or the likelihood of living alone. But the manipulation runs deeper than surface-level assumptions.

Joseph Berg, director of the Alabama Securities Commission, explained the troubling pattern: “We've discovered from the last 15 months that it's not only a matter of retirees being targeted by a particular scammer, but being taken advantage of by turning their trusting nature against them. To most of the 'greatest generation', someone's word was their bond”.

This deep-seated trust, once a virtue, is now being weaponized by fraudsters who exploit it for personal gain.

Between 2020 and 2024, there was a dramatic surge in scam reports from older adults who lost $10,000 or more, rising to more than four times the previous volume.

This sharp increase isn’t random or accidental; it reflects a deliberate and targeted approach by fraudsters who know exactly what they’re doing.

Phishing, stuffing, stealing—ATO attacks are rising. Lock down your Venmo today. Image Source: Unsplash/sentidos humanos

The five scams targeting payment app users​

1. The overpayment trap

This classic scam has evolved for the digital age.

Max Spivakovsky, senior director of Global Payments Risk Management at Galileo Financial Technologies, explained how it works: “Fraudsters send money via Venmo, claim it was an error, then pressure victims to send it back before the original payment bounces.”

Here’s how it works: A scammer “accidentally” sends you money on Venmo, then quickly messages you, pleading for you to send it back. They might even claim it was meant for someone else or that they made a typo.

How to outsmart the scammer:

• Never send money back to someone you don’t know, especially if the request feels rushed or emotional.
• If you receive an unexpected payment, contact Venmo support directly—don’t respond to the sender.
• Be wary if you’re paid via one app (like Zelle) and asked to refund via another (like Venmo). That’s a major red flag.

2. Account takeover (ATO) attacks

Your Venmo account can be hijacked if criminals steal your passwords or personal information.

Spivakovsky noted: “We're seeing an increase in account takeover activity across banks via multiple mechanisms. Notoriously phishing attempts, abuse and credential stuffing.”

Once they're in your account, thieves can drain your connected bank account or use your payment history to target your contacts.

How to stay secure:

• Use a unique, strong password for Venmo—never reuse passwords from other sites.
• Enable two-factor authentication (2FA) for an extra layer of protection.
• Watch out for suspicious emails or texts asking for your Venmo login or verification codes. Venmo will never ask for this information out of the blue.

3. Prize and lottery scams

The Federal Bureau of Investigation (FBI) reports show $102 million was lost to lottery scams in 2024. The formula is simple: you've “won” something big, but need to pay taxes or fees upfront to claim it.

The payment app angle: Scammers insist you pay the “fees” through Venmo or Zelle because it's “faster” and “more secure”, but really because it's harder to trace and impossible to reverse.

According to the Federal Trade Commission (FTC), a legitimate prize should never come with strings attached.

If you're asked to hand over payment or sensitive account details to claim your winnings, it's likely a scam. In most cases, you’ll end up empty-handed—and possibly out of money or access to your account.

How to avoid the trap:

• Remember: Real prizes are free. If you have to pay to claim your winnings, it’s a scam.
• Never share your Venmo account details or send money to claim a prize.
• If you’re unsure, check the official website of the company or organization supposedly offering the prize.

Also read: Think twice before returning money on Venmo—how a $500 error could happen to anyone!

4. Non-delivery scams

You pay for goods or services that never arrive. What makes this particularly dangerous for seniors is that scammers often advertise essential items like medical supplies, home repairs, or mobility aids.

According to Security.org, nearly one in five people who use payment apps have been targeted by scammers—highlighting just how widespread these schemes have become.

How to protect yourself:

• Only use Venmo to pay people you know and trust.
• If you must buy from someone you don’t know, use a payment method with buyer protection (like a credit card or PayPal’s “Goods and Services” option).
• Be skeptical of deals that seem too good to be true, especially if the seller pressures you to pay quickly.

5. Verification code tricks

Around 11% of people who use payment apps like Venmo experience verification code scams.

This sneaky scam involves a fraudster posing as Venmo support, a friend, or even a potential buyer/seller. They’ll ask you to share a verification code sent to your phone—often under the guise of “verifying your identity” or “confirming a payment”. In reality, they’re trying to access your account.

Remember: Legitimate companies will never ask for your verification codes.

How to shut down the scam:

• Never share verification codes with anyone, for any reason.
• Venmo will never ask you for your code via text, email, or phone call.
• If you receive a suspicious request, contact Venmo support directly through the app or their official website.

Venmo's unique vulnerability: The social factor​

Venmo has a particular weakness that makes it especially attractive to scammers.

Diana Rothfuss, global solutions strategy director for Risk, Fraud & Compliance at SAS, explained: “Where Venmo gives fraudsters a leg up over competing platforms is the social layer that's built into the app. By default, users' purchase or money transfer details post to a social feed, showing the sender and recipient, timestamp and a payment note, where users often describe in emojis or text what the transaction was for.”

This creates a treasure trove of information for scammers to build convincing impersonation attempts.

Your defense strategy: Practical protection steps​

The good news is that most scams are preventable if you know what to watch for and take a few key precautions.

Immediate actions to take today:

• Set your privacy to private: In Venmo, go to Settings > Privacy > Private. This prevents scammers from studying your transaction patterns.
• Enable two-factor authentication: Add this extra security layer on all your payment apps and the email accounts connected to them.
• Use strong, unique passwords: Each payment app should have its own complex password that you don't use anywhere else.
• Set up account alerts: Configure notifications for every transaction so you'll know immediately if something unauthorized happens.

Smart usage rules

• The golden rule: Only send money to people you know personally and trust completely. If you haven’t met them in person or can’t verify their identity, don’t risk it.
• Verify before you send: If you receive an urgent request for money from someone claiming to be a friend or family member, call them directly using a number you have saved in your phone.
• Monitor your account: Check your Venmo activity regularly for unfamiliar transactions.
• Update your app: Keep Venmo and your phone’s operating system up to date to patch security vulnerabilities.
  Educate your loved ones: Share these tips with friends and family—especially those who might be new to payment apps.

The bottom line on payment app safety​

Payment apps like Venmo offer genuine convenience, but they require a new kind of vigilance. The key is understanding that these platforms work more like cash than traditional banking—once the money is sent, getting it back is extremely difficult.

The scammers are getting more sophisticated, but so can your defenses. By understanding their tactics, securing your accounts properly, and maintaining healthy skepticism about unexpected financial requests, you can enjoy the convenience of digital payments while keeping your hard-earned money safe.

Your financial security is worth the extra few seconds it takes to verify a request or double-check a transaction. In a world where scammers are working around the clock to separate you from your money, a little healthy paranoia can be your best protection.

Key Takeaways

• Venmo scams are on the rise, with payment app users experiencing or being targeted by some form of scam, and this trend is expected to continue into 2026.
• Common scams include overpayment scams, ATO via phishing or stolen credentials, fake prize notifications requiring payment, non-delivery of purchased goods, and verification code scams.
• Scammers exploit Venmo’s social feed, using publicly available transaction details to make phishing, impersonation, and fake buyer/seller scams more convincing.
• Experts recommend never sharing account information or verification codes, always verifying recipients’ identities, and avoiding sending money to anyone you haven’t met or cannot confirm as genuine.

What questions do you have about staying safe on payment apps? Have you or someone you know encountered any suspicious requests lately? Share your experiences in the comments below—your story could help protect another reader from falling victim to these increasingly common scams.

At The GrayVine, we’re all about looking out for each other. Let’s keep our community smart, savvy, and scam-free in 2026 and beyond!