Venmo, a payment system which uses mobile devices, has either a personal or business account. Most people have a personal account, and as such, are required to use it for personal dealings with friends or peers. But when a fraud ring in LA managed to steal $50,000 worth of product on Facebook Marketplace, the terms of Venmo ended up working against its users.
A photographer named Rasa had listed a camera on Facebook Marketplace and was contacted by a buyer. The camera was listed at $1200. The buyer paid Rasa the full amount, but in 52 separate Venmo transactions. Rasa thought it was weird, but since he had all the money, he let the camera go.
A day later, Venmo froze Rasa’s account and took back all that money. It had violated their terms and was also found to be from stolen cards and accounts. In this situation, Rasa had no recourse with Venmo to get the money back, and lost the camera as well.
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