PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Venmo Resolves Security and Discloser Issues with the FTC

By Sarah Grotta
March 5, 2018
in Analysts Coverage
0
2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
payments innovation, banking information

Digital disruption concept background image. Double exposure of silhouette of peoples with binary code abstract background. Representing sharing economy in digital disruption.

Last week, person-to-person payment app Venmo finalized a settlement with the Federal Trade Commission regarding security and consumer disclosure practices.  TheVerge reported that the investigation began in 2016, so most likely the issues cited have long been resolved.  Here are the details of what went awry:

One of the FTC’s central complaints was Venmo’s notification policy, which told users money had been deposited in an account even when transactions were still under review. Scammers were able to exploit that practice by purchasing goods with fraudulent transactions, leaving sellers with no money and no goods after the transactions were reversed. The Verge found a single scammer who stole at least $125,000 in luxury goods using that technique, operating for years with no apparent interference from law enforcement. Los Angeles police finally brought charges against the alleged scammer earlier this month.

The FTC also alleged significant security failures by the app, despite promises of “bank-grade security.” According to the complaint, Venmo failed to notify users when passwords and email addresses were changed or new devices added to a given account, a practice that persisted through at least 2015. That allowed hackers to quietly hijack accounts and withdraw thousands of dollars…

Although there wasn’t a monetary fine against Venmo, they will be subject to 10 years of independent reviews, which themselves can be costly.  Plus, those individuals who have been harmed by their practices or a State that can prove its residents were harmed, could pursue this in court.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

Read the quoted story here

2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: FTCSecurityVenmo

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025
    consumer debit

    As Payment Types Proliferate, Debit Cards Still Go Strong

    June 26, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result