Financial Literacy Month 2026 and Finance App Safety

Stop reading if you don’t use a personal finance app. Still here? Good. You already know what these apps can do—send money in seconds, automate payments, invest, track every subscription and expense. But those benefits come at a cost. 

Financial Literacy Month 2026 is the perfect time to take stock of the apps installed on your phone and decide whether they’re worth the risks. 

Personal finance app scams

In 2024, Americans reported $390 million in fraud involving digital payment apps. The unreported numbers are probably much higher. Let’s take a look at some of the most common scams facing common apps today. 

1. Crypto scams

Fraudsters ask for crypto payments to “unlock” your account, access frozen funds, or complete a transaction. Ignore it. Few legitimate apps and services require payment in crypto currencies. Bad actors prefer crypto because transactions are largely irreversible and the platforms are worse than banks at flagging suspicious transactions. 

2. Accidental payment scams

Scammers send money to your app using a stolen credit card or other fraudulent source and then message you claiming it was a mistake. They ask you to “send it back” immediately. After you send the money, the real owner of the stolen card reports the fraud, and the app reverses the original payment. This leaves you responsible for the debt, while the scammer keeps the “refund” you sent them.

3. Impersonation scams

Bad actors run ads or send texts that look like official alerts about “suspicious activity” on your account. When you call the number provided, a fake agent walks you through a series of steps to “secure” your funds. In reality, they will direct you to send your entire balance to their wallet under the guise of moving it to a “safe server.”

These days, scammers can also use deepfakes and AI to pretend to be family members or friends and urgently ask for monetary help. If you get a request over text, a call over an unfamiliar number, or even a video call, make sure the person on the other side is who you think they are. Develop a safe word to verify identity. 

4. Extortion scams

Cybercriminals claim to have access to information that could damage your reputation or safety unless you pay. They will often demand that you use a P2P payment app because a bank teller might flag someone who looks stressed and wants to move a large amount of money. 

Most extortion scams end there. Criminals rarely have access to your computer or physical location. Don’t pay. Shut down whatever method of contact the criminals use and remove your info from the web to make yourself a harder target. 

5. Recovery scams

After a scam, you may receive messages on social media or text from “recovery experts” or “recovery lawyers” who can “help you get your money back.” It’s another trick. If you’re looking for help online, be warned; these scammers are often the first results to pop up.  Cut your losses, report the incident to the platform directly and file a police report. 

Payment apps and data privacy

The risks don’t end with scams. Payment apps are one of the main ways your data leaks into the world and ends up on broker sites. 

Payment app privacy issues

These apps have your whole life in their hands. 

1. Venmo has access to precise location, microphone, contacts, storage, and nearby Bluetooth devices. It also shares transactions publicly by default unless you opt out when you sign up. 
2. PayPal has access to in-app search history, contacts, and personal info including name, email, and phone number, which can be shared with third parties, as well as precise location, purchase history, and credit score. 
3. Google Pay has access to all the info in the related Google account. It isn’t a standalone app. 
4. Cash App has access to personal data, approximate location, purchase history, credit score, contacts, and photos. 
5. Zelle is less transparent about what data it collects during transactions. It is not a standalone app, but rather operates through banks and other financial institutions, and its level of data sharing is unclear. 

Payment app privacy settings

Most apps have poor default settings when it comes to privacy, so head to your settings right now and follow some crucial steps to lock things down: 

• Turn on Security Lock in Cash App. Security Lock prevents transactions in the app on your behalf without your face, fingerprint, or PIN. Even if someone takes over your account, your money will be safe as long as you don’t share your PIN.  
• Turn off public transactions in Venmo, and location. By default, Venmo adds transactions to a public feed and collects your precise location. Say “no” to both features. 
• Check your phone’s privacy settings. Turn off location and access to your contacts for individual apps. This may not be possible for PayPal, which uses your location to verify transactions. 
• Restrict access to your contacts. A phone number is enough to identify someone and make them a target for scams and spam. If your contact list gets exposed, you don’t just put yourself at risk, but also anyone you’re connected to. Input individual phone numbers for specific transactions rather than giving access to your full contact list. 
• Turn off model training and platform improvement features. Some platforms want to train AI tools based on your personal data and transactions. It’s always a bad idea. 
• Opt out of third-party data sharing when possible. Deleting your account with an app won’t necessarily delete all your data. You may have to delete your data and opt out of additional data sharing with third parties. 

Investment apps and data privacy

Investment apps collect tons of data and have faced lawsuits related to breaches and poor privacy practices. Here’s why you might want to think twice about using many of these apps.

1. Security problems

Investment apps are common targets for cybercriminals because it’s a likely place to find money. 

Phishing is the most frequent threat; emails or texts impersonating customer support, or bad actors posing as representatives from another company to get you to hand over account credentials or authorize a transfer.

We covered one such story on What the Hack, where cybercriminals posing as Meta’s support team stole nearly $5k from an older adult’s Robinhood account. 

Robinhood has also been fined by the SEC in the past for failing to investigate suspicious transactions and protect investors against identity theft and other harms. And even when you’re clearly the victim, Robinhood and similar platforms reserve the right to refuse reimbursement. 

Use these platforms with caution. If things turn bad, you’re probably on your own. 

2. Third-party data sharing

Investment apps often collect significant amounts of personal data, including precise location, photos and videos, files and documents, contacts, and much more. Most investment apps connect to and share at least some of that data with third parties for verification purposes. 

For example, Acorns, a micro-investing app, claims the only data it shares with third parties is in-app messages, but it actually uses a third party called Plaid to verify and sync user accounts. Plaid settled a $58 million lawsuit in 2021 after it was accused of collecting more user data than necessary. 

Check privacy settings and reduce data sharing where possible. 

Budgeting apps and data privacy

Budgeting apps sound like a great idea. They help users get full visibility into their spending and subscriptions and set limits. Unfortunately, third parties also get lots of visibility. 

For example, the Electronic Privacy Information Center (EPIC) filed a complaint with the Consumer Financial Protection Bureau against Rocket Money for claiming to have strong privacy practices while collecting and sharing personal information extensively with third parties. Many other budgeting apps have similar practices, including significant third-party data sharing. 

All in all, some budgeting apps may not be worth the money they save if you’re concerned about data privacy. 

What to do when finance apps don’t protect you

At the moment, enforcement against sketchy finance apps is nearly nonexistent. A few states have laws that protect you to some degree. So far, there’s no such federal law. Agencies like the CFPB and FTC have seen their powers reduced under the current administration as well, making it harder to enforce existing protections. 

This means that your safety with these apps is primarily up to you. 

If you do get scammed or experience fraud or an account takeover, here are the steps you should take: 

1. Change passwords, shut down credit/debit cards, and reset any other information you can. Cybercriminals often use stolen passwords to target your other accounts, so if you reuse passwords, change those too. 
2. Report the issue to the platform support team. Don’t expect too much. They’ll rarely help you, but they may ban the other user and prevent similar incidents in the future. 
3. Report the incident to the FBI’s Internet Crime Complaint Center. Again, there isn’t much they can do, but reporting helps reveal fraud patterns and may lead to stronger protections long-term. 
4. Contact the AARP Fraud Watch Network Hotline. They can offer free, non-judgmental guidance after a fraud incident. 
5. Use cash rather than cash apps when possible. You can lock your debit card between cash withdrawals for maximum protection. 
6. Centralize. If you use five different payment apps, make it one or two. The fewer apps you’re using, the fewer entry points for cybercriminals and scammers. 

Getting scammed or hacked on one of these apps can cost you thousands and be an embarrassing or frightening experience, but you’re definitely not alone. There are resources available to help you regain control. 

How to use personal finance apps securely

Everything we talked about above is basically reactive, but there are also some best practices that can help prevent security incidents in the first place. 

Update regularly. Developers release patches to fix security vulnerabilities that hackers use to gain access to your accounts. 

Use a strong, unique password or passphrase. A long, complex passphrase is safer than a short password. 

Enable multi-factor authentication (MFA). AKA two-factor authentication or two-step verification. This adds a vital second layer of protection that requires more than just a password to enter your account. 

Set up alerts. Every time money moves, you should get a notification. That way, you can catch any issues early. 

Prevent SIM swapping. Ask your provider to add a PIN or “SIM lock” to your mobile account to stop scammers from stealing your phone number to intercept your text-based security codes.

Don’t click links. Open the app or head directly to the website instead. Phishing emails and texts often lead to fake login pages designed to steal your data.

Reduce your digital footprint. Cybercriminals cross-reference with data broker sites to personalize scams. Make yourself a tougher target. 

Financial Literacy Month 2026 Q&A

Read through our answers to common questions below. If you have additional questions, reach out on our social channels or through the chat function on our website. 

1. Can you get scammed on Venmo?

Yes. While Venmo is a relatively secure platform, scammers use social engineering and “accidental payment” tactics to steal funds. Keep your eyes open and don’t send any money without confirming the source of the request. 

2. Are payment apps safe?

Generally, yes, provided you take strong measures to protect yourself. Most major apps (Venmo, PayPal, Google Wallet) use strong encryption and multi-factor authentication and give you some control over your privacy settings, so take advantage of all of those features. 

3. Can you get your money back if you’ve been scammed?

Rarely. Because most payment apps are classified as “authorized transfers” (you initiated the click), they often fall outside legal protections. In most cases, cut your losses and move to a prevention mindset. 

4. How do I report a scam on PayPal?

1. Log in and go to the Resolution Center.
2. Click Report a Problem.
3. Select the specific transaction and choose “I want to report unauthorized activity” or “I didn’t receive my item.”
4. Pro tip: If you recognize phishing before you fall for a scam, forward to phishing@paypal.com and delete the email. 

5. How do I report a scam on Venmo?

1. Navigate to the Activity tab.
2. Tap the suspicious transaction.
3. Select “Need help?”
4. Select the correct option to flag the user for fraud, or tap “Other” and “Get in Touch” to contact Venmo directly. 

6. What should I do if I get scammed? 

Change your passwords, report to the platform, and report to the IC3 and, if necessary, local law enforcement. You can also call the AARP Fraud Watch Network Hotline at 877-908-3360. 

Final thoughts

Personal finance apps may be popular, useful, and sometimes even fun to use, but they come with risks. Make sure you  keep your money and your data safe throughout the rest of 2026. 

Happy Financial Literacy Month 2026! 

Learn More

• Learn about the data privacy risks of loyalty program apps
• Try out our free scan to check your exposure online
• Discover how privacy policies trick you so companies can misuse your data