The Fraud Codex

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Is Venmo a Scam?

venmo.comLegitimate Business
Risk Assessment
20%Risk Score
Low Risk

Summary

Venmo is a legitimate mobile payment service owned by PayPal (NASDAQ: PYPL). Designed for payments between people you know and trust, not strangers or purchases.

Venmo is NOT a scam - owned by PayPal. However, it's for PEOPLE YOU KNOW. Never use for stranger purchases - almost no protection.

Company Information

Parent Company
PayPal Holdings, Inc.
Founded
2009
Headquarters
New York, NY
Stock
NASDAQ: PYPL (parent)
Employees
Part of PayPal

Trust Indicators

Concerns

  • Designed for friends/family, NOT purchaseshigh[source]
  • Very limited fraud protectionhigh[source]
  • Heavily targeted by scammershigh[source]
BBB Rating
A+
Trustpilot
1.3/5
BBB Complaints
2,100

💡 Recommendations

  • 1.ONLY send to people you know personally
  • 2.Never use for Marketplace/Craigslist
  • 3.Enable PIN protection
  • 4.Ignore "accidental payment" messages
  • 5.Turn off public transaction feed

📚 Sources

PayPal Investor RelationsVenmo LicensesBBB Business ProfileFTC P2P Scam AlertVenmo User Agreement
Last updated: 2026-01-22

Disclaimer: This analysis is for informational purposes only. Information may be incomplete, outdated, or inaccurate. Our assessments should not be the sole basis for financial, legal, or personal decisions. Always conduct your own research and due diligence.