Manhattan DA Alvin Bragg calls for cash apps to crack down on fraudsters
Bragg wrote to the digital payment app providers urging certain consumer protections in the face of a range of threats from criminals
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Manhattan District Attorney Alvin Bragg is calling on digital payment apps such as Venmo, Zelle and Cash App to implement more consumer protections amid a rise in financial app thefts in New York City.
"No longer is the smartphone itself the most lucrative target for scammers and robbers – it’s the financial apps contained within," Bragg said in a statement. "Thousands or even tens of thousands can be drained from financial accounts in a matter of seconds with just a few taps."
"Without additional protections, customers’ financial and physical safety is being put at risk. I hope these companies accept our request to discuss commonsense solutions to deter scammers and protect New Yorkers’ hard-earned money," he added.
Bragg sent letters to the CEOs of Cash App, which is owned by Block, as well as PayPal, the owner of Venmo, and Early Warning Services, which operates Zelle, and said his office encountered several types of fraudulent schemes from scammers exploiting victims’ digital payment apps.
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Manhattan District Attorney Alvin Bragg sent a letter to several leading digital payment platform providers calling for increased security for users amid an uptick in theft from such apps. (Photo by Selcuk Acar/Anadolu Agency via Getty Images / Getty Images)
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Bragg urged digital payment platforms to make certain security features a default standard for all users, including:
- Adding a second and separate password to access the app on smartphones
- Imposing lower limits on the monetary value of total daily transfers to reduce the amount that could be lost
- Requiring wait times and secondary verification of up to a day for large monetary transactions
- Better monitoring accounts for unusual transfer activities and asking for confirmation when suspicious transactions occur.
Some of these security features are already available for users of the digital payment platforms Bragg sent letters to, although they may not necessarily be default settings or available on each of the apps.
Cash App is a subsidiary of Square. (Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
"Cash App continues to be committed to building trust with our customers and investing in areas that help build a safe and secure platform," a Cash App spokesperson told FOX Business in a statement.
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The Zelle Network is operated by Early Warning Services, LLC. (Rafael Henrique/SOPA Images/LightRocket via Getty Images / Getty Images)
A spokesperson for Early Warning Services, LLC, the network operator of Zelle, told FOX Business the company is "aware of isolated criminal incidents described in the Manhattan District Attorney’s letter" and added that providing "a safe and reliable service to consumers is the top priority" of the company.
Venmo is operated by PayPal. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images / Getty Images)
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A PayPal spokesperson told FOX Business in a statement, "PayPal and Venmo take the safety of our customers and their information very seriously. In addition to proactively leveraging sophisticated fraud detection tools, manual investigations, and partnering closely with law enforcement agencies to protect our customers against common scams, we have several options in place to enable enhanced layers of security and protection directly within our apps."