Is Venmo Safe?

Yes, Venmo is generally safe to use; however, there are always risks when using the mobile payment app. Some risks you should be aware of include Venmo scams, account compromises and data breaches. Typically, people use Venmo to pay friends back when they owe money or split the bill at a restaurant. Although Venmo allows you to send and receive money, it is much safer to use the app when transactions are made with people you know and trust.

Continue reading to learn more about Venmo’s safety features, the risks of using the app as well as how you can use it to send and receive money safely.

Is Venmo safe to use?

Venmo is generally a safe platform to conduct mobile payments due to the app’s security precautions, which protect its users.

• Every transaction you make on Venmo is encrypted, meaning your financial information remains secure. Venmo ensures data encryption, preventing hackers from stealing your private information and data.
• Venmo offers Purchase Protection with no additional fees to ensure you get reimbursed for any purchase that doesn’t arrive or is damaged during shipping. Using Venmo’s Purchase Protection feature on eligible payments before you make a payment will give you your money back if the service or item differs from what you expected.
• Your Venmo account activity is monitored to detect any unauthorized transactions or suspicious behavior. Venmo also offers support if someone with unauthorized access uses your account to commit fraud.
• Venmo supports Multi-Factor Authentication (MFA), which gives you an additional layer of security beyond your username and password so no one else can access your account. By enabling MFA in the form of receiving a code via text message, your Venmo account will be strongly protected. You can also set up a PIN or use biometrics for your Venmo app as an extra form of MFA.
• You can choose to disable a device from your Venmo account without deleting your entire account. For example, if your phone is stolen and you want to protect your Venmo account, you can log in to Venmo from another device and revoke your stolen phone’s access.

The risks of using Venmo

Even though Venmo is usually safe to use for sending and receiving money, there are several security risks you may face when using the app.

• Scams on Venmo and other mobile payment apps are very common and can lead to losing money, infecting your device with malware or compromising your account. Some of the most common types of scams include phishing, fake prizes and catfishing.
• Your Venmo account could become compromised without a strong password and MFA. Using a strong, unique password for your Venmo account will make it more challenging for someone to hack into and steal your money.
• As with any company that stores Personally Identifiable Information (PII), Venmo could suffer a data breach and jeopardize your data being exposed. All Venmo transactions are set to public by default, and Venmo has had privacy issues in recent years involving public transactions.

8 tips for using Venmo safely

Despite potential security risks, there are many ways you can use Venmo to make transactions with friends and family. Here are eight tips for safely using Venmo.

1. Secure your Venmo account with a strong password and MFA

Make sure you use a strong password and enable MFA on your Venmo account to keep it secure. A strong password consists of at least 16 characters and a combination of uppercase and lowercase letters, numbers and symbols. In addition to making your password strong and unique to your Venmo account, you should also enable MFA to add another layer of security and protect your account from unauthorized access.

A great way to store your new strong password and MFA for your Venmo account is to use a password manager like Keeper^®. A password manager allows you to create, update, store and share your passwords in a secure, digital vault. The best password managers, like Keeper, are built on zero-trust and zero-knowledge security frameworks, ensuring your data is encrypted and private only to you. Keeper can store your passwords as well as your MFA methods to make logging in easier by autofilling your credentials into Venmo.

2. Set up a PIN or biometrics for the Venmo app

Since the Venmo app allows you to set up a PIN or biometrics as forms of MFA, you should enable these security features to enhance the safety of your Venmo account. When you use Venmo without a PIN, anyone can take your phone, open your Venmo app and make transactions from your Venmo account. However, if you have a PIN set up on your Venmo app, an unauthorized user would need to know your PIN to access your account.

Similarly, enabling biometrics for the Venmo app is a strong way to protect your account from unauthorized access. For example, if your child plays on your phone, they could accidentally enter your Venmo app if it isn’t protected with your biometric information and potentially make a transaction. By guarding your Venmo app with a PIN and biometrics, you increase the security of your Venmo account and finances.

To set up a PIN or biometrics on your Venmo app, go to the Me tab by clicking your profile picture. Tap Settings at the top of your screen, then select Enable Face ID & PIN if you have an iPhone or PIN Code & Biometric Unlock if you have an Android under Preferences. Once you tap the toggle to enable the feature, create your PIN and your Venmo account will be more secure.

3. Link your credit card instead of your bank account

Rather than linking your debit card to your Venmo account, you should link your credit card because it offers better protection, making it safer to use online. Even though both debit and credit cards have fraud protection, it is safer to use a credit card because the credit card issuer will investigate fraud and must repay fraudulent charges. Instead of the responsibility falling on you with a debit card, using a credit card on your Venmo account will not put your bank account funds at risk if your account is compromised or hacked. Note that using a credit card for Venmo transactions will charge you an additional 3% fee, but purchasing items from authorized merchants does not draw that transaction fee.

4. Set your Venmo account to private

You should make sure your Venmo account is set to private for a variety of reasons. Having a public Venmo account will show who you’re sending and receiving money with, what you’re spending money on, when you make a transaction and where you’re making the transaction. Let’s imagine you have a public Venmo account, and you send a large amount of money to a family member. If your friends, other family members or even strangers see this transaction, they might assume things about your lifestyle and financial status, which could lead to uncomfortable relationship dynamics or even scams.

To adjust your Venmo account’s default privacy settings, go to the Me tab by clicking on your profile picture, then tap Settings. Click Privacy, and choose whether you want your future payments in the Venmo app to be Public, Friends or Private. Note that this change will only update for future payments, so if you want to hide past transactions, you can go through the same steps except tap Past Transactions under Privacy to make necessary adjustments.

5. Only send and receive money from people you know and trust

You should only use Venmo to make transactions with people you know and can trust because payments made with strangers could result in losing money. Sending and receiving money with people you know significantly reduces your chances of being scammed, since transacting with strangers could leave you deceived by paying for an item or service that doesn’t exist. If you’re trying to purchase an item from a business through Venmo, make sure the company is using an official Venmo business account. Otherwise, your purchase will not be protected by Venmo’s Purchase Protection feature, which will reimburse you for any items or services not provided as described or not provided at all.

6. Avoid holding large balances in your Venmo account

You should not hold a large balance on your Venmo account because any money stored in the app is at a higher risk of being stolen in the event of a data breach. It’s safer to transfer any funds in your Venmo account to your bank account when you don’t need them right away for a payment. For example, if you have $500 in your Venmo account that you simply forgot about or are keeping in preparation for a purchase, and Venmo suffers a data breach, that $500 could disappear. By transferring it to your bank account instead of storing it in the Venmo app, your money will be protected.

7. Keep an eye out for security notifications

Be aware of any security notifications you receive through the Venmo app because these will inform you if any unauthorized transactions occur or if other suspicious activity is detected. If someone hacks into your Venmo account, these notifications can alert you in real time, allowing you to act quickly to update your password and reverse any fraudulent charges.

8. Be cautious of scams

You can use Venmo safely by staying updated on the latest common Venmo scams and knowing how to avoid falling victim to them. The most common ways to get scammed on Venmo are through phishing attacks, illegitimate cash rewards, fake payments and compromised accounts. Several things you can do to protect your Venmo account from scammers are using a strong password, enabling MFA, making your transaction history private and only sending and receiving money from people you trust.

Keep your Venmo account safe

Like any app or service that holds your financial information, it’s important to keep your Venmo account safe by enabling available security features and practicing strong password hygiene. One of the best ways to use Venmo safely is by securing your account with a strong password, which you can create and store using Keeper Password Manager. With its built-in password generator, Keeper Password Manager makes updating your passwords easy and stores them in a secure, encrypted vault.

Start your free 30-day trial of Keeper Password Manager today to experience the convenience of creating strong passwords and storing them in a safe location to protect your Venmo and other online accounts.