Venmo claims it uses a variety of security measures to safeguard the financial details of its customers, such as encryption of data and password protection. However, it's not completely secure, and users may be exposed to risks that range from web-based "phishing" to stolen account passwords. In accordance with the terms and conditions of Venmo, the users are safe from fraudulent transactions that are made on their accounts if another is able to access the account. If, however, you make a payment to the incorrect person, the only option is to politely request the return of the money. Though users can contact Venmo for assistance, however, the company's website states that its website that "We cannot guarantee we'll be able to help recover the money." If you transfer money through Venmo to someone to purchase items that have not been delivered or a service isn't provided in the event of a dispute, you may not be able to recover the money. "Venmo does not protect you from transaction fraud," states Samantha Ettus, founder and CEO of payment solution provider Park Place Payments located in Woodland Hills, Calif. "Let's imagine you have paid the neighbor ahead to collect groceries. You make the payment using Venmo and If they don't give you the groceries then you don't have recourse." This is why Ettus advises users to pay cash only after a specific service has been completed. "Pay your babysitter by the end of the shift. You can pay your friend after they've purchased the present," she says, "or you can do this with people who you are able to trust. It's not a good idea to be giving money to people you don't know through Venmo If you haven't received the gift you were supposed to get." Also, remember that the information you provide in your Venmo transactions might not be protected. If you've not changed your settings since you first signed up all users in the app could be able to view the transactions you make - which includes your username, profile picture, as well as the memo you sent along with the money. "Venmo by default sets transactions to 'public'," says Justin Varner, a principal security engineer at credit-building bank Self Financial. "The user has to opt-in to make them private." To keep transactions anonymous users need to go to the "Privacy" menu under Settings within the app and then change the settings to private. If not, anyone - even those who are friends with Venmo can observe when you transfer money, and who you send it.