Protect Digital Wallets and Mobile Money Transfers From Scammers

Target: Rohit Chopra, Director of Consumer Financial Protection Bureau

Goal: Better regulate and insure mobile cash apps and services.

Consumers are increasingly falling victim to sophisticated mobile banking scams that fleece them out of their hard-earned money. Such tactics include scammers mimicking the phone number or website of a victim’s bank and then manipulating the victim into providing personal banking information. But even popular and credible apps are posing a threat to consumers’ savings.

For example, mobile money transfer services such as Cash App and Venmo enable individuals to quickly and conveniently send and receive payments, while also storing funds in so-called digital wallets. The problem: many of these apps do not enjoy the same strict protections (such as FDIC insurance) as a traditional bank. Therefore, if customers fall victim to a scam—or even if the service itself should ever go under—then consumers have few options for recovering their money. Buy now, pay later apps like Affirm and Zip have also come under fire for business practices that have led many users into debt.

The U.S. Consumer Financial Protection Bureau has already launched an inquiry into the latter organizations. Sign the petition below to urge a resolution and an expansion of this inquiry to include protections for all mobile money transfer services.

PETITION LETTER:

Dear Director Chopra,

Money transfer and buy now, pay later mobile services have exploded in popularity. While consumers love the ease of use and convenience, hidden drawbacks can arise. This bureau is currently investigating the business practices of buy now, pay later apps. Please ensure this inquiry yields meaningful and actionable results and regulation.

In addition, explore avenues for implementing insurance safeguards for money transfer and payment apps. Consumers who entrust these companies with their hard-earned money deserve maximum protection.

Sincerely,

[Your Name Here]

Photo Credit: Jack Sparrow


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