• Home


Lesko Financial: Dangers of E-Money Apps

Posted: Updated:
VESTAL, N.Y. -

Transcript of Thursday's August 8, 2019 Lesko Financial segment that aired on Fox 40 News at 6.

BRI:
MONEY TRANSFER APPS ARE CONVENIENT BUT IT PAYS TO BE CAUTIOUS WHEN USING THEM… ACCORDING TO GREG LESKO OF LESKO FINANCIAL. GREG…

GREG:
THANKS, BRI. THERE WAS A TIME WHEN ATM’S SEEMED LIKE THE ULTIMATE CONVENIENCE. BUT IN TODAY’S INCREASINGLY CASHLESS WORLD. PHONE APPS--SUCH AS PAYPAL, VENMO, SQUARE, AND OTHERS--ELIMINATE THE NEED TO HEAD TO THE ATM OR USE A DEBIT CARD. THE LATEST APP IS ZELLE, LAUNCHED BY MAJOR BANKS IN ORDER TO GRAB THEIR SHARE OF THE 66-BILLION-DOLLAR MONEY-TRANSFER INDUSTRY. BUT BECAUSE THEY CONNECT DIRECTLY TO SOMEONE’S BANK ACCOUNT, IT’S WISE TO REMEMBER THESE APPS CARRY AN ELEMENT OF RISK.

BRI: 
WHAT ARE THE DANGERS OF USING APPS?

GREG
WITH THESE APPS, YOU’RE GIVING A THIRD-PARTY DIRECT ACCESS TO THE FUNDS IN YOUR ACCOUNT. PEOPLE CAN BE LESS CAUTIOUS WITH THEIR PHONES THAN THEY ARE WITH A CHECKBOOK OR DEBIT CARD. ALSO, APPS OFTEN “REMEMBER” LOG-ON INFORMATION--MAKING IT EASIER FOR A DISHONEST INDIVIDUAL TO GAIN ACCESS. AND SCAMMERS ARE ACCESSING APPS FOR THEFT OR FRAUD. SOME GET INTO USERS’ PROFILES, ADD THEIR OWN PHONE NUMBERS, AND HAVE FUNDS TRANSFERRED TO THEM. SOME OFFER MERCHANDISE, GET PAID THROUGH THE APP, THEN DISAPPEAR.

BRI:
HOW CAN APP USERS PROTECT THEMSELVES?

GREG:
TRANSACTIONS DONE THROUGH A BANK CAN OFFER A LAYER OF PROTECTION; BANKS CAN ALERT ACCOUNT HOLDERS WHEN WITHDRAWALS OR PAYMENTS ARE SUSPICIOUS AND THEY OFTEN RESTORE FUNDS STOLEN THROUGH ILLEGAL MEANS. IF YOU USE MONEY APPS, VERIFY ANY RECIPIENT BEFORE SENDING FUNDS. TAKE EXTRA MEASURES TO PREVENT WITHDRAWALS WITHOUT YOUR CONSENT. MONITOR ACCOUNTS AND ASK YOUR BANK FOR ALERTS IF THERE’S UNUSUAL ACTIVITY. YOU COULD ALSO TIE MONEY APPS TO A SMALLER, SEPARATE BANK ACCOUNT, THAT YOU SET UP JUST FOR THAT PURPOSE.