No payment method is 100 percent risk-free. Learn what you can do to keep scammers from exploiting the fast, convenient digital transactions you’ve come to depend on. 

Digital payment technologies are changing how we think about money. The explosive growth of digital wallets like Apple Pay and mobile payment apps such as Venmo, Cash App and Zelle® have made life easier, allowing you to send and receive money almost anywhere in the world. A global study projects the value of digital payments to reach $11.6 trillion in 2024.

At the same time, digital transactions attract scammers who can also exploit their speed and convenience. By one estimate, total losses from online payment fraud between 2023 and 2028 could total $362 billion.

“For many of us, the only time we worry about our digital transactions is when they don’t work,” says Charles Banks, vice president, Information Security at U.S. Bank. “But we need to stop and ask, ‘Is that payment app or website secure?’ We need to be careful about how digital access can be compromised and how traditional fraud can happen through online payments.”

Digital payment companies work to keep their products secure, but consumers must also take steps to ensure they are not leaving their payments and digital identities exposed. “Online payments can seem like magic, but they’re not,” Banks adds. “Fraudsters know this, so we need to educate ourselves and take steps to stay secure.” 

Here’s what you can do to protect yourself from being scammed and keep your money safe.

New payment scams, old scam tactics

While there are many ways to target online payments, fraudsters generally try to convince their targets to digitally send them funds or compromise online credentials and then siphon off the funds themselves. “Digital systems are now a vehicle for traditional fraud tactics,” Banks says. “Fraudsters online are still seeking to exploit trust and account access.”

Fraudsters will stop at nothing trying to trick you into giving them your personal information to gain access to your bank account — and your money. The most common methods include:

• Phishing, smishing and vishing. Fake emails, text messages and phone calls remain one of the most effective fraud tactics. Scammers may impersonate someone you should trust, such as a bank representative or law enforcement, to convince you to share account information, online credentials or one-time authentication passcodes. Never give those out. The messages may also include malware that, once downloaded, can let the scammer access important data, such as account numbers and passwords.
• Fraudulent websites, apps and ads. Many scammers create an online presence for a seemingly legitimate service or product. They attract unknowing customers and simply process any payments they receive without delivering anything.
• Data breaches. Criminals may hack a company database and steal customer information, including credit card numbers, personal identification numbers and login credentials.
• Scam claims. A scammer may ask you to send yourself money to “reverse” a fraudulent transaction. But the person is actually attempting to gain access to your Zelle® account so they can use it to make unauthorized payments that end up in their pocket. Learn more from “How to Pay it Safe with Zelle®” and this video from Zelle^® on avoiding payment scams. 

What you can do to keep your digital payments safe

Knowing what to look for can help keep you and your money safe. Here are steps you can take to protect your online payments:

• Stop and think before you hit send. Scammers are using AI tools to make phishing emails look more professional and generate “deepfake” videos and voice messages that might sample a real recording of someone you know. Don’t respond to unsolicited requests, and don’t send a digital payment unless you have confirmation that the recipient is who they say they are.
• Regularly update your payment operating systems. Like any product that depends on software, digital wallets and apps are regularly scanned for bugs and vulnerabilities. Make sure you’re using the latest version available.
• Use biometrics and multifactor authentication where available. Many digital payment platforms and banking websites enable features like facial recognition and authenticating a user from a separate device. “Scammers take advantage of our behavior,” Banks says. “They want you to be impatient and reject any payment process that isn’t instantaneous.” The extra authentication steps may cost you a few seconds, but they also provide an extra layer of defense.
• Routinely change your passwords. Malicious actors can guess or break weak passwords to gain access to your online payment accounts. Keep your passwords complex, never use the same password for more than one account and use a password manager or store all your passwords securely.
• Treat Zelle® like cash. Always double check to make sure you have the right email or U.S. mobile number before you send money. If a purple Z appears next to your contacts, they are already enrolled with Zelle®. If the recipient is already enrolled, you’ll see the first name of the person who has enrolled the email address or mobile number being used on the screen before the money is sent. Carefully review any prompts before you confirm the transaction. Neither U.S. Bank nor Zelle® offers a protection program for payments made with Zelle® — for example, if you do not receive the item you paid for or the item is not what you expected. 
• Regularly monitor your credit report. Ensure that no one has opened accounts in your name. 

What should I do if I’ve been the victim of a digital payments scam?

If you think something’s not right with your account, contact your financial institution right away. At U.S. Bank you can call the Fraud Liaison Center, 877-595-6256. Or call the number on the back of your U.S. Bank card or statement. Find out more about the U.S. Bank Digital Security Coverage.

Read more about ways to protect yourself from fraud and scams.