INDIANAPOLIS — A $200 Venmo payment from someone you do not know seems like an honest mistake. At least that's what Venmo user Oscar thought when he saw the payment hit his account. So, he sent the money back to the person.
"I knew the apprehension that this person was probably feeling," he said, "So I tried my best to return the funds as soon as possible."
That is because Venmo and other money sharing apps rarely let you cancel payments since it works like cash, so asking for the money back is often your only recourse for a case of mistaken identity.
"Then I received an email from Venmo, saying the original payment has been disputed," Oscar said.
That left Oscar's account in the red and the app frozen until he pays off the negative balance.
Here's how the Better Business Bureau said the scam works: The scammer sends you money with a stolen credit card. Quickly after, the person requests from you an equal amount of money. That is when you send the money back, except that payment is a new transaction from your account. When the stolen card is reported, the payment originally deposited into your account vanishes.
When Oscar told Venmo's customer service what happened to him, they said he owed the money anyway.
"If they're unable to recoup their funds, then you're out of luck and you're on the line for it. There's no recourse," he said.
Venmo's email to him added that, "Venmo is designed for payments between friends and people who trust each other."
Jennifer Adamany with the BBB said scammers are really good about taking advantage of new technology. She said if you receive an accidental payment, avoid reacting.
"Just wait, you know, a few days to see if it removes itself. Don't be quick to act about it," Adamany said.
On Venmo's site, they suggest customers contact customer support if they get a payment from a stranger.
Oscar told 13News that Venmo reached out to him after we contacted their team and that Venmo made his account whole.
Venmo, which is owned by PayPal, offers this advice on how to protect yourself from scams.