Tips to avoid peer-2-peer payment scams

We continue to see an increasing trend in peer-to-peer (P2P) payment scams. Popular platforms like PayPal, Venmo, Cash App, Google Pay, and Zelle have made it easy for people to send and receive money online almost instantly. Whether it’s splitting a dinner bill, paying rent, or just sending a gift, many P2P payments offer a legitimate quick and easy solution – however, don’t let convenience lead to fraud. Read on for tips on what to watch for.

Common types of P2P scams

A P2P payment is a digital money transfer made between two individuals without the need of a traditional banking system. Instead, these transactions happen online using a website or mobile app. P2P scams involve fraudulent activities using peer-to-peer payment platforms, where scammers exploit the convenience and trust in these services to trick users into losing money or giving up personal information. Some common types of P2P scams include:

• Over‑payment scams – Scammers send a fake “over‑deposit” (often using stolen credit cards), then request that victims return the excess. Once the scam is flagged, the original payment is reversed—leaving victims out of pocket.
• Imposter scams – Fraudsters impersonate reputable businesses, banks, or government agencies, contacting victims with warnings like “your account is suspended” or “suspicious activity” was found in your account. Then, request personal data or P2P transfers to resolve the issue. Victims may be asked for login information or redirected to a fake login page and asked to reveal passwords.
• Stolen‑card payment scams – Scammers attach stolen credit cards to P2P platforms, pose as buyers of high‑value items (electronics, vehicles, etc.), and once the seller ships the goods, the payment is invalidated—leaving sellers with neither product nor money.

How to avoid P2P payment scams

Always be suspicious of any “unexpected” or “urgent” payment requests that come to you via email, telephone calls, texts, or pop-up ads. When using P2P services, if something feels off, pause and ask questions. Remember to never share personal information or pay for products until you receive them. Always keep records of your transactions, so if something goes wrong, you have documentation. More tips to avoid P2P payment scams:

• Never Refund an “Error” from Your Account – Funds sent by scammers may vanish later—but if you’ve already returned money, the platforms typically can’t recover it. Also, any refunds should go through the P2P platform’s transaction dispute process.
• Verify Transaction Requests – Before transferring funds, independently verify the recipient’s identity—never through links or phone numbers provided in suspicious messages. For business transactions, confirm email, phone number, or store credentials via official websites or trusted references.
• Treat P2P as Cash – Once you send a P2P payment, you most likely won’t get it back.
• Know Who You’re Dealing With – Unless you’re paying someone you know and trust, do not use P2P apps for goods or services. Instead, use platforms with purchase protection or safer payment methods.

What to do if you fall victim

If you suspect a scam, taking swift action is crucial. Follow this guide:

• Report it immediately to the P2P platform. It might be able to reverse the transaction if caught early enough.
• Inform your financial institution, especially if your bank account is linked to the P2P app.
• Immediately update passwords for your P2P apps and any associated bank accounts and activate multifactor authentication on your accounts if you haven’t already.
• Scammers are often repeat offenders, so continue to monitor your accounts closely for any suspicious activity.
• Submit a complaint with the DFPI or call (866) 275‑2677. Your report helps us identify and stop patterns of fraud and scams.