While all major P2P systems encrypt your financial information, they are not immune to hacking or scams. Venmo uses data encryption technology to protect users against unauthorized transactions while storing user information on servers in secure locations. Venmo also give users the option of setting up PIN codes for mobile applications. However, there is no protection if you choose to send a payment through Venmo for a good or service. So it’s best not to make transactions with strangers through Venmo. It’s also a good idea not to leave much, if any balance in P2P apps. Funds that remain in an app and become compromised are not insured, so if your account is hacked, you have no way to recover that money. You can also set up two-factor authentication to protect your account further. Additionally, a PIN that must be entered before the app can be opened is a great idea. These protections help you in case someone else gets their hands on your phone. Safety tips when using Venmo, Cash App or other P2P applications: Set up a PIN or Touch ID. Change your account setting to “private.” Turn on notifications for every transaction Only use P2P services with people you know and trust Don’t store large balances in your P2P apps