Venmo, Zelle, Cash App, and other mobile payment apps are being accused of leaving thousands of users vulnerable to organized crimes.
Manhattan District Attorney Alvin Bragg is calling for the popular apps to increase security measures amid "growing numbers of incidents" involving fraud and theft.
According to Bragg, the apps needed transaction limits, two-way verifications, and better monitoring systems to prevent further crimes through their platforms.
Even an option to cancel transactions would be beneficial, Bragg added.
The district attorney cited a 2022 letter from Sen. Elizabeth Warren's office stating fraud claims have tripled since 2022, making it more difficult for banks to refund affected customers in whole.
Online Payment Apps Used for Crimes Increase
True to Bragg's warnings, cash payment-related crimes have indeed been on the rise across the US, including New York.
Recent data reports have shown online scams victims have increased in the past years as a method of attack becomes more complicated.
Even armed robberies targeting cash apps heightened due to how easy it is to steal from the app as long as the user is there.
Cash Payment Apps Respond to Security Concerns
Venmo and its parent company PayPal said it is already adding "enhanced layers of security and protection" on its app, CNN reported.
This is on top of the fraud detection tool, manual investigations, and coordination with local and national authorities.
Zelle said it was aware of the incidents involving its app but insisted that "less than one-tenth of one percent" of all transactions on the app were reported as fraud.
Cash App has yet to respond to the letter.
Bragg is currently reaching out to cash app victims who never came forward for their losses.
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