What is Venmo and is it Safe?

In today’s world of online transactions, we’ve all probably heard the word Venmo thrown around, but what is Venmo? Venmo is an app that allows you to send and receive money via your smartphone. It is a quick and easy way to pay your friend back for that coffee they bought you without having to dig around in your car for the exact change you need.

While it may be convenient, there is always the question of whether it is safe. As with any online application, there are always risks. To combat these risks, Venmo uses data encryption to protect its users. There is also no financial information shared during the transaction and your data is stored on secure servers.
There are several ways you can help protect yourself as well.

Here are ways Venmo offers protection: 

• Venmo offers a Touch-ID and PIN option for mobile users. This means that you need to use your thumb print or a PIN to access the app, even if you are already logged in on your device.
• Venmo's default setting is that your transactions are listed on a public “newsfeed," but this is something you can opt out of. All you need to do is go into settings and select privacy, from there it is an easy change to make it private. If you do choose to leave your account public, or even just shared with your friends list, take solace in knowing that the amount you sent or received is not listed.

Here are ways to protect yourself:

• Make sure you are transferring any funds you receive through Venmo to your bank account. Venmo is not FDIC insured so best practice is to make sure you do not leave money on the app.
• Only use Venmo to transfer money to and from people you know and trust. Venmo is a great tool for paying back a friend, but it is not designed to be used for paying strangers.

Using a little bit of caution makes Venmo a quick, convenient, and relatively safe option when needing to send or receive money from friends or family. If you choose to use Venmo, it can easily be linked to your Frontier Bank account or debit card.

Becky Kadinger
Credit Admin/Customer Service Representative
beckyk@frontierbk.com
605.331.2889