While it offers decent ease of use and convenience as a payment platform, Venmo also exposes users to many vulnerabilities. Because it makes payment processing swift and nearly anonymous, the platform has become a top choice for scammers looking to con people and steal their money.
The Venmo chargeback scam is one way that scammers perform their fraudulent operations. In this article, we’ll explore the various ways a chargeback scam could occur and solutions to help you stay protected on the platform.
What Is the Venmo Chargeback Scam?
On the surface, the Venmo chargeback scam is simple—the scammer makes a payment through Venmo, and all seems well. Then, after some time, you receive a chargeback request for the amount because the cardholder disputed the transaction with their payment provider.
The chargeback mostly occurs because the buyer likely paid you with a stolen credit card or used a card without the owner’s permission. Once the actual cardholder finds unauthorized charges on their account, they ask that the funds be reversed, leaving you with a loss.
In the next section, we’ll closely examine the most common chargeback-related scams.
Different Chargeback Scam Scenarios
Scammers may approach you under any of the following guises that lead to a chargeback:
- Overpayment—The “buyer” sends more than the required amount for a purchase and asks for a refund. Since the funds they sent come from a stolen card, its legitimate owner eventually files a dispute, and the amount is reclaimed from your account. Now, you’ll lose the refund you sent to the scammer in addition to the amount they paid you
- Fake check payment—The scammer offers to pay for items via check but “mistakenly” indicates more than the required amount on the check. They request a refund of the excess via Venmo, and when you deposit the check, it clears at first. After some time, the check bounces, leaving you to suffer the damages
- Accidental payment—Similarly to the other mentioned tactics, the scammer “accidentally” sends you an amount of money via a stolen card. They request a refund and immediately hightail once you send it. When the card owner eventually notices the unauthorized transaction, they file a dispute to recover the money from your account, leaving you with a loss
Most chargeback scams come with a refund request attached. If a buyer suspiciously requests a refund, offer to bring in Venmo support to smooth things out or call Venmo at (855) 812-4430 to handle it.
How To Get Money Back From Venmo Scammer
Unfortunately for victims, transactions from a Venmo account can’t be canceled. Plus, it’s often pointless to contact the scammer to ask for a refund since they’re usually long gone when their scam is discovered.
Still, there are a few other things you can try:
- Contact Venmo through its online request form, detailing what transpired as clearly as you can
- Go to the Venmo app and file a dispute. Identify the fraudulent transaction, provide helpful information, and submit your request. Venmo will run an investigation and inform you of their decision
Tip: After a scam occurs, your financial accounts are in their most vulnerable state, and your immediate priority is to prevent further damage. One of the ways to mitigate your losses is to move your savings out of your compromised accounts into a fraud protection storage platform like FortKnox. This way, your funds are locked safe even if the scammer strikes again.
