http://time.com/money/4036511/venmo-more-check-than-cash/
Venmo is a very popular transaction payment program that is primarily used on mobile devices. It is a service application that is owned by Paypal, which is another payment transaction company. However, in the research that I have done on Venmo’s security, there were a lot of concerns initially with how effective the structure of the mobile app was in deflecting and detecting fraud.
Typically people use Venmo as a cashless way of sending money to others. These type of transactions range from personal transactions and small business transactions. Initially, Venmo did not have a notification method for changes in email and physical addresses which allowed scammers and hackers to send up to three thousand dollars to themselves. Venmo has implemented more precautions to avoid mishaps like this.
Additionally, the most common scam, according to Wolff-Mann is when someone sends you a payment but then cancels the transfer process before you could fully transfer their money to your account. In the same way that a paper check could bounce or be nulled out, Venmo scammers implement the same trick after they received their reciprocal payment.
Whether it’s implementing a security deposit initially for transactions or slipping in a contract that obligates the sender to fulfill their payment request, using Venmo definitely has its risks and benefits.