Out with friends? Maybe don't tell them to Venmo you their portion of the bill.
A new report from Slate investigates the popular mobile payment app's troubling security problems, and uncovers some horror stories that will make you think twice about ditching cash and relying on Venmo. Slate details the ordeal of Chris Grey, a Venmo user who was suddenly notified by his bank that he had a pending transaction for $2,850 — which was made by a hacker who easily changed Grey's password and disabled his notification settings, all without Venmo alerting Grey to any possible fraud.
"There are basic security holes that you could drive a truck through," Grey said. And so far, it seems like Venmo isn't doing much to promise customers that their information is safe. Slate's Alison Griswold continues:
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For many Venmo users, the most disconcerting thing about these tales should be that what happened to Grey and Charania could just as easily happen to you. [...] Most people connect their Venmo account to either their debit card, credit card (the only nonfree option, with a standard 3 percent fee), or directly to their bank accounts. This is what Venmo wants. The company’s ultimate vision, as Braintree CEO Bill Ready told Bloomberg in November, is to build a user base so large that Venmo becomes a default mobile checkout option at stores, and can charge merchants for the privilege of accepting Venmo payments. [Slate]
Not very comforting. Perhaps we should blame Lucas?
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