CFPB Annual Report Highlights Payment App Fraud Targeting Veterans

In an Annual Report covering 2022, the CFPB Office of Servicemember Affairs analyzed complaints submitted by servicemembers, veterans and their families. During that year, over 66,400 servicemember complaints were submitted, which represents a 55 percent year over year increase, and a 62 percent increase compared to 2020.

The CFPB highlighted an increase in payment app-related complaints (over 1,100 in 2022), many of which concerned fraud and other scams.

The CFPB recommended that payment app providers:

• improve their network security by preventing, identifying and limiting fraudulent activity;
• working with other parties if fraud occurs to reduce the time servicemembers are unable to access lost funds; and
• improve and accelerate their reimbursement policies.