Federal watchdog warns consumers about leaving money in money-sharing apps

by ian

You may want to think twice before storing your money with companies like Venmo or PayPal.

The Consumer Financial Protection Bureau warns that storing cash on these apps isn’t a safe long-term option. The agency said that funds in digital payment apps aren’t protected by insurance like normal bank accounts. This could pose potential risks if a crisis should occur like the recent failure of Silicon Valley Bank

Moving forward, Bureau says it will “sharpen its focus” on those that sidestep the safeguards of local banks and credit unions. And until these apps become safer to use, consumers are advised to move their cash into their regular bank accounts.