Zelle And Venmo: Risk And Reward

Zelle and Venmo have become two of the most popular apps for cash transfers, allowing users to quickly send money to their friends via smart phone. 18 different banks, including large names like Chase, use Zelle so their customers can easily transfer money without having the hassle of writing a check. The transfer happens within seconds and could be considered one of the best finance apps developed for the 21s century.

But what are the risks of using apps like Zelle and Venmo? Due to the apps garnering massive popularity, hackers and con artists are using the app to scam people out of their money. Additionally, the banks that partner with Zelle have not fully implemented two-factor authentication, meaning that both the sender and the recipient do not have to acknowledge the transaction before it occurs.

These alarming discoveries show how quickly a convenient app meant to make money transfer easy can quickly become a risk to your bank account. Fraudulent charges are hard to dispute since the cash transfer is done almost instantaneously. Also, if you type in the wrong user or phone number, there is almost no way to get your money back from an honest mistake.

Users must be careful when using Zelle and Venmo, as their growing user base may lead to more problems than convenience.

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6 years ago
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