The in-person fake payment app scam can start one of several ways. A stranger might approach you on the street with a sob story about how all of their payment cards were stolen and ask you for help. They’ll send you some money with a payment app and you’ll take money out of the ATM for them. Or you’re trying to sell something, and they’ll send the money to you via payment app right in front of you to assure you it’s not fraud.

Of course you give them the money or the goods. You only discover later that the payment to you did not go through and you are out the money or the goods that you gave to them.

This scam has no doubt come into being as people rightfully have become suspicious of people who “cannot make it” to a meetup. It also preys on well-meaning people who want to help out a stranger in need. It also takes advantage of the victim being swept up in the moment so that they don’t even think about making sure they were actually paid.

Note: There are scams where you do not meet up with the purchaser, but they inform you that the payment system requires you or them upgrading to a “business account” - this is not that scam as it involves the scammer showing up in person.

How to protect yourself
First of all, if you are accepting payment for goods, congratulations on not falling for the old “oh, I’m going to send this payment with extra money that you can pay to this other person” fake payment scam.

Now, you just have to remember to check your own bank account/payment account to make sure you did get paid before you hand over the goods/money. Or even better, get payment in cash. (Not checks/cheques, cash!)

Remember, scammers play on emotions - excitement about getting a payment, sympathy towards a supposed victim. They want you to be caught up in the moment. Keep a clear head and you’ll be fine.