Six tips to protect yourself when sending someone money

Six tips to protect yourself when sending someone money

September 11, 2022
With peer-to-peer payments (P2P), you can transfer money to someone from your bank account, debit card, or credit card using a website or mobile apps such as Zelle, Cash App, PayPal, or Venmo. P2P payments can also include your financial institution's apps, such as Schwab Mobile. While P2P payments are popular and convenient, understanding the risks can help you avoid becoming a victim of scams and fraud.

How do scams and fraud differ?
Fraud involves someone accessing your account without your permission and completing unauthorized transactions. A scam involves being tricked into authorizing a transaction or sending a payment. It's important to remember the difference, as the same protections do not always apply to both.

Ways to protect yourself

  • Pay it safe: Most P2P apps don't allow you to cancel a transaction, treat payments like cash, and only send funds to those you know and trust.
  • Take your time: If someone pushes you to act quickly with a P2P payment, it could be a red flag.
  • Use your security settings: Enable settings within the P2P applications, such as multifactor authentication (also known as two-factor authentication),
  • Let your financial institution help: Fraud alerts can automatically notify you of activity, and always contact your financial institution immediately if you suspect something is wrong.
  • Be aware of phishing: Fraudsters might try to access your account by posing as your financial institution or a P2P company. Suppose someone calls you unexpectedly and claims to be from your financial institution. In that case, it is best to hang up and call your financial institution at the number printed on your statement rather than the number that called you.
  • Use unique passwords: Use different passwords for P2P apps and other sites, avoid sharing your passwords with others, and consider a password manager tool if you have trouble remembering passwords.

Check our online resources.

For more security tools and steps you can take, visit SchwabSafe® to view our latest resources and learn more about how you can safeguard your personal information and assets. And while you're at it, check out our Security Knowledge Center.

Your security is our priority. If you have any questions, please get in touch with your Financial Consultant at KOHR Investments, LLC at 562-987-2727 - 949-367-0992 or call Schwab Tech Support at 800-435-4000. If you're outside the U.S., please call +1-415-667-8400