Manhattan District Attorney Alvin Bragg has issued a call for increased consumer protections in digital payment apps, such as Venmo, Zelle, and Cash App, as instances of financial app thefts surge in New York City.

Bragg highlighted a shift in the focus of scammers and robbers from smartphones to the financial apps housed within, capable of rapidly draining thousands or even tens of thousands of dollars with a few taps.

“No longer is the smartphone itself the most lucrative target for scammers and robbers – it’s the financial apps contained within.” – D.A. Bragg. We sent letters to Venmo, Zelle, and Cash App to demand better consumer protections for their customers. https://t.co/NFwbXS9KQm

— Alvin Bragg (@ManhattanDA) January 23, 2024

The details

Manhattan District Attorney Alvin Bragg has issued a call for increased consumer protections in digital payment apps, such as Venmo, Zelle, and Cash App, as instances of financial app thefts surge in New York City.

Bragg highlighted a shift in the focus of scammers and robbers from smartphones to the financial apps housed within, capable of rapidly draining thousands or even tens of thousands of dollars with a few taps.

Expressing concern for the financial and physical safety of consumers, Bragg urged the collaboration of digital payment platforms to implement practical solutions that deter scammers and safeguard the finances of New Yorkers.

In letters addressed to the CEOs of Cash App (owned by Block), PayPal (owner of Venmo), and Early Warning Services (operator of Zelle), Bragg detailed various fraudulent schemes encountered by his office.

Security changes

To bolster security measures, Bragg proposed making specific features standard defaults for all users.

Recommendations included the introduction of a second and separate password for accessing the app on smartphones, the imposition of lower limits on total daily transfers to minimize potential losses, the implementation of wait times and secondary verification for significant monetary transactions, and enhanced monitoring of accounts for unusual transfer activities with confirmation prompts for suspicious transactions.

While some of these security features are already available for users of the mentioned digital payment platforms, their default settings may not be universal or accessible on each app.

App companies respond

In response to the call for heightened security, Cash App, owned by Block, affirmed its commitment to building trust with customers and ongoing investments in measures to create a safe and secure platform.

Early Warning Services, the operator of Zelle, acknowledged awareness of isolated criminal incidents outlined in Bragg's letter, emphasizing that providing a safe and reliable service to consumers remains their top priority.

The move by the Manhattan District Attorney underscores the evolving challenges in the digital payment landscape, where the convenience of financial transactions is accompanied by an increased risk of fraudulent activities.

As these platforms continue to play a central role in modern financial transactions, collaboration between law enforcement, regulatory authorities, and industry stakeholders becomes essential to ensure robust security measures and protect consumers from evolving threats.