How Thieves Are Borrowing Phones and Emptying Bank Accounts

Mobile banking is usually secure—unless you hand over your phone to a thief. Here's why you need to be careful.

In the past, if a stranger wanted to use your phone in a public place, it was relatively safe to hand it over. The risk of theft was obviously there. But provided there was nowhere for them to run, the odds of it actually occurring were slim.

Unfortunately, with the widespread popularity of payment apps, this is no longer true. Once criminals grab hold of your phone, they could—if you're unlucky—access your online banking and take your money.

So, how exactly do thieves use other people's payment apps to make money for themselves? Let's take a look.

Why Are Criminals Asking to Use Your Phone?

Mobile payment apps such as Zelle and Venmo have never been more popular. Their popularity is easy to understand—they make it possible to send money to anyone in seconds from anywhere in the world.

However, one problem with these apps is that someone might see them as an ideal opportunity to steal your money.

Most scams that utilize payment apps involve a range of tricks to get you to send money. But some criminals are now skipping that step; they simply ask strangers to use their phones and then send the money themselves.

The victim often doesn't realize what's happened until hours or even days later. And by that point, there's very little they can do about it.

How Does the Scam Work?

Some criminals are more imaginative than others, but the easiest way for one of these individuals to borrow a stranger's phone is to simply say that their own phone's battery has died.

They are likely to come up with some kind of story as to why the call is urgent. The perpetrator will then pretend to make a phone call, and when the call apparently doesn't go through, they will ask to send a text message instead.

The criminal might also ask for directions. But this isn't because they need them; it serves as a distraction and gives them more time to press extra buttons on your device.

After sending money to themselves, some criminals will take the additional step of deleting the app they used to make the payment. Depending on the app, this may stop you from receiving a notification that you've sent the money.

How Much Are People Losing?

This scam is popular with criminals because, in many cases, mobile payment apps place few restrictions on the amount of money you can send.

If you have an account with Venmo, you need to verify your identity upon signing up. However, you can send up to $2,999 in a single transaction once you've done this. If you have Zelle installed, the limit can go even higher depending on your bank.

Some people can lose their entire bank balance trying to help a stranger, so it's important to beware of a potential criminal.

Why Is the Scam Effective?

This is one of those scams where unless you've fallen for it, you might wonder how anyone could fall for it. The reality, however, is that it happens every day.

Most people don't realize just how little protection they have with mobile payment apps. They also don't understand how quickly a well-practiced stranger can use such apps to access their money.

Criminals also make sure that their excuses sound reasonable. As humans, we tend to have empathy toward others. Scammers take advantage of the fact that most people are open to helping a stranger if they use the right story.

How to Avoid This Scam

Luckily, this is one of the easier scams to avoid. Once you're aware of its existence, it's just a matter of never giving your phone to a stranger for any reason. It's also a good idea to be suspicious of anyone who asks you to do otherwise.

Most payment apps will offer you a collection of optional security features. With Venmo, for example, you can make the app request a PIN code every time you open it. Moreover, you can ask for text confirmations whenever you make a payment. These are just a couple of the several ways you can keep your Venmo account secure.

It's also worth taking the time to activate your phone's built-in security settings and add an extra layer of safety.

Why Some Thieves Want You to Use Their Phone Instead

If you ever sell anything, it's worth noting that some criminals make money by showing you their phone instead.

In a relatively new scam, people are installing fake payment apps on their phones. Then, they use those apps as evidence that they've sent payment to the victim.

This usually occurs when the victim places an ad selling something on a popular marketplace. Upon meeting the seller, they show themselves sending a payment. If the victim doesn't check their phone for confirmation, the thief can walk away with the item free of charge. It then becomes your word against theirs that the item was paid for with almost no chance of recovery.

Can the Victim Get Their Money Back?

The phone borrowing scam is popular because it's difficult for users to prove that they've fallen victim to it. Even if you figure out what happened immediately afterward, there's very little that you can do.

Criminals usually send the money to anonymous accounts they've created with stolen ID documents. And once the money arrives, they tend to withdraw it soon after.

Even though the victim will know what the perpetrator looks like, it's extremely difficult to find them. The only luck you might have is if the event took place in an area covered by CCTV.

Don't Risk Handing Over Your Phone

If a stranger approaches you asking to borrow your phone, it's impossible to tell what their motives are. They might be a regular person who is simply having a bad day. Or they might be a thief who has practiced the same story a hundred times before.

Unfortunately, if you have a payment app on your phone, giving people the benefit of the doubt can be a very expensive mistake. And as the popularity of this scam increases, so do the odds that you're talking to a thief. Unless you're willing to risk your money, it's usually best to assume the worst.

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