Amboy Bank News

Payment Apps Can Lack the Protections Ensuring Funds are Safe

The Consumer Financial Protection Bureau (CFPB) is warning consumers that using payment apps, such as PayPal, Venmo, Cash App and Apple Pay, for direct deposit of paychecks or to store significant amounts of cash is potentially putting their money at risk. Unlike a traditional bank or credit union, these payment apps do not carry the same protections that will ensure funds are safe.

According to the CFPB, more than 75% of adults in the U.S. have used at least one payment app, but they are not federally insured on the institution level. That means if one of the companies were to go under customers could lose their money. This could be putting billions of consumer dollars at risk, according to the agency.

Amboy Bank is a New Jersey-based bank with 135 years in the local communities. FDIC insured up to the legal maximum, Amboy Bank will continue to successfully prioritize the best interests of the clients first. Please continue to check our Security Center for updates and tips, and if you experience any security related activity with any of your Amboy Bank accounts, please contact us immediately at 877-222-6269 or reportfraud@amboybank.com.