The widespread use of Venmo, has led many users to be victims of scams. The more users Venmo has, the more they will be susceptible they will be to the scams without the proper knowledge.
Venmo is often used as a form of easy payment with its main demographic being college students. Their purpose is to be fast and reliable for a smooth and easy payment. It’s most commonly used for purchasing and selling among users whether it is rent or to purchase tickets.
However, many users are not aware of the transaction policies in Venmo’s user agreement where personal accounts cannot be used for business transactions such as rent, tickets, and the selling of products and business accounts cannot be used for personal use. Venmo will put a freeze onto your account and/or reverse the transaction. Once the transaction is reversed, there is no way to track down the funds allowing a loophole for scammers. On top of that, many users who have experienced this have tried to get in contact with Venmo customer service, but due to the loophole, they cannot track down the funds nor are they responsive to customer claims.
User’s should be careful to use Venmo within their network of people who are reliable to avoid scam and should be careful with what they classify their transactions as. The success of Venmo does not only depend on the transactions but also the perception of the company as well.
Charvi Radia MGMT 201
Link to article- http://www.businessinsider.com/innocent-venmo-users-are-getting-defrauded-out-of-thousands-of-dollars-2015-9