This content was created by Robert Siciliano. This content was uploaded by Robert Siciliano. This is a YouTube news segment titled "Acts of kindness repaid with Venmo theft. The phone scam warning to watch out for Boston 25 News" (published Nov 21, 2018). It's a Boston 25 News report by Ted Daniel about a phone scam in which strangers ask to borrow unlocked phones and then use Venmo (or similar money-transfer apps) to steal funds. Participants in the segment include reporter Ted Daniel, victim Pam Clay, personal security expert Robert Siciliano (Hotspot Shield), and other unnamed speakers. The piece describes how the scam works, cites warnings from multiple cities, and provides mitigation advice (set a separate Venmo PIN; link a credit card rather than a debit/checking account).
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Would you let a stranger borrow your bank card? Probably not. What about your phone? Turns out that can be just as risky.
A new warning tonight about a scam involving a popular group of apps that could drain your bank account. Boston 25 News reporter Ted Daniel explains how it works and how to avoid it.
I got a notice from my bank that there was overdraft on my account, and I knew that I had plenty of money for all the things that I spent money on.
It happened to her, and if you have a money transfer app like Venmo It can happen to you. No qualms about letting someone use your phone?
No, I'm nice. It says doormat on my forehead.
Hi! The scam is simple. A stranger approaches with a sob story. It's an emergency. They need to use your phone to make a quick call or text. Let's say someone comes up, says it's an emergency, wants to borrow your phone. Do you let them?
Yeah, of course.
Once they have your phone, it's on.
He'll just stand in a populated touristy area and he'll do this over and over and over and over again. We're gonna do one, 1-800-591-5911.
Robert Siciliano is a personal security expert with Hotspot Shield. He says instead of making a call, the scammer opens your Venmo and transfers hundreds, even thousands of dollars to an untraceable account.
There's no account numbers involved. It's literally first name, last name. Venmo transfers are a relatively instantaneous, easy process, which is why the app is so successful.
Authorities in Atlanta, Denver, and Charlotte have issued warnings about the scam, and we found a Reddit post —where a man claims it happened to him late at night outside a bar in Boston's financial district. He writes, "If your phone is unlocked and your bank is tied to your phone, then that's all they need." There is an easy way to protect your account and your money, and it only takes 5 minutes. Even if you already have a PIN for your phone, you should set up a separate one for Venmo. Go to settings, select PIN code in the security settings, Follow the instructions and you're good to go.
When someone was to borrow your phone, if they open up your Venmo app and if you have that additional PIN installed, they would need your PIN to make a transfer out of your account.
It also happened to Pam Clay. I was just floored. I had no idea. A lesson for everyone. For some, learned the hard way. I'm Ted Daniel, Boston 25 News.
Ted says you could add another layer of protection on Venmo. Link your account to a credit card instead of a debit card or checking account. There is a 3% fee on transactions, but most credit cards won't hold you liable if you are a victim of fraud.
