Michigan Attorney General Dana Nessel has issued a renewed warning to consumers about the risks associated with payment apps and scams during the holiday season. Many people use peer-to-peer (P2P) services for money transfers, making them targets for scammers who employ tactics such as "accidentally" sending money to users' accounts and requesting it back.
Nessel advises against returning the funds, recommending instead that users contact their P2P service provider regarding any discrepancies. Often, these fraudulent deposits involve stolen credit card information. Eventually, when flagged as fraudulent, the legitimate cardholder may have the charge reversed, leaving the consumer liable if they returned funds to the scammer.
"Scammers are using every tool at their disposal to steal your money," said Nessel. "To stay safe this holiday season, think twice before transferring funds through a payment app, especially if it's to someone you don't know."
The warning outlines various forms of P2P scams:
- Impersonation of banks alerting customers about suspicious activity and directing fund transfers under false pretenses.
- Fraudsters posing as representatives from fraud departments or merchants seeking personal information.
- Scammers pretending to be businesses requesting P2P payments for goods or services.
- Use of stolen credit cards linked to payment apps by scammers targeting online sellers of high-value items.
- Spoofed emails threatening account suspension unless passwords are entered on fake websites.
Nessel emphasizes never sharing personal information and treating P2P payments like cash transactions. Consumers should avoid paying for products until they receive them. Victims can file complaints with the Federal Trade Commission.
For more information on holiday scams or filing a complaint with the Attorney General's office, consumers can visit the Department of Attorney General’s website or contact their Consumer Protection Team.