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Social Media Payments: Secure or Risky?

Dec 13, 2017 ​

Social media platforms like Facebook, Twitter, and Snapchat have long been a place to reconnect and communicate. Now, these and other social media channels are providing free payment services, where users are encouraged to attach debit or credit card information to their social media accounts for person-to-person financial transactions.

 

However, that could come with much higher security risks than using traditional payment routes. And thanks to new technologies, Nusenda Credit Union offers the same convenience, but with layers of security to better protect your money.

 

Social commerce, as it’s called, works like this: If you’re using a social media channel that has a social commerce option, you’d first tie your debit or credit card to your account. If you wanted to split a bill, pay someone back for a shared expense, or send money to a family member or friend – a message or action on your mobile device sends cash to anyone you choose that also uses social media.

 

With social commerce, however, security isn’t paramount. For example, when using Facebook Payments or Snapcash (Snapchat’s money transfer option), a transaction happens immediately, and cannot be cancelled after it has been initiated.

 

Social media channels also don’t require you to re-authenticate your identity prior to transferring money. That means if you are continually logged into your accounts, anyone can secretly pick up your phone or mobile device, open your social media app, and send themselves money – all without your knowledge or permission.

 

To protect yourself from scammers on these social media messaging platforms, watch out for the following:

 

  • People asking you for money who you don’t know personally.
  • People asking you for advance fees in order to receive a loan, prize or other winnings.
  • People asking you to move your conversation off of your social media page, such as asking you for a separate email address.
  • People claiming to be a friend or relative in an emergency; or
  • Poor spelling and grammatical mistakes.

 

If you notice a transaction was made without your permission, contact your card issuer immediately. But if you decide social commerce is a good option for you, logging out of your social media accounts after use, plus enabling a two-factor authentication, can help prevent fraud and protect your money.

 

At Nusenda, we believe banking with your credit union should fit easily into your lifestyle and help you achieve your financial goals. That’s why we offer a number of features for accessing your money as conveniently and securely as possible, including Fingerprint Login on newer Apple and Android devices. 

 

For Nusenda members, our free Person-to-Person transfer service, launched in July 2017, is accessed from secure Internet and Mobile Banking applications. It offers the same features as social commerce, but you’ll be asked to confirm your identity by entering your card's PIN number before any transfer transaction is authorized. You can also learn more about Nusenda’s four types of safe and secure money transfer options here

 

Check here for ways to protect yourself and learn more about keeping your identity secure online, including information on VRS Elite Fraud Resolution Services, available at no cost for members of Nusenda members. 

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