Venmo lost millions from fake payments this year
Venmo has historically been plagued by payment fraud, and it continued to struggle after reporting losses of about $40 million in the first three months of this year alone, The Wall Street Journal reports. That figure is roughly 40 percent greater than what the company had anticipated, with much of the loss attributed to fraudulent payments, internal documents shown to WSJ proved.
The internal documents weren’t specific on whether the fraudulent activities were through stolen credit cards, hacked accounts, or other creative scams. In most cases of fraud, Venmo’s policy is to reimburse the user for their losses, meaning that as fraud runs rampant, the company continues to lose out.
To combat the issue, Venmo blacklisted tens of thousands...