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Fnord666 writes:

Police have arrested a man named Andy Mai in connection with a string of Venmo scams against LA-area resellers, according to Los Angeles County Superior Court records. Andy Mai faces six charges of grand theft, filed on January 25th. On Wednesday, Mai posted a $145,000 bond, pleading not guilty to all charges. He is next scheduled to appear in court on February 26th. Detectives on the case said the investigation was still ongoing, and declined to comment further.

In November, The Verge traced more than $125,000 in scams perpetrated under the name Andy Mai, exploiting a poorly understood feature of Venmo's payment system. Arranging to buy iPhones, cameras, and other big-ticket items on Venmo, the scammer would pay with fraudulent funds that disappeared from seller's accounts after 24 hours. When Venmo reversed the charges, sellers were left with no money and no goods, often out tens of thousands of dollars. Venmo advises users never to purchase goods from strangers using Venmo, but few are aware of the restriction, which proved crucial to the scammer's success. In recent weeks, a number of the victims have received official notifications of court proceedings.

Venmo.com: "Venmo is a free digital wallet that lets you make and share payments with friends. You can easily split the bill, cab fare, or much more."

Coverage on The Verge

Related Links:

• Scammers Are Using Venmo to Steal Pricey Camera Gear
• Venmo Scammer Steals an URSA Mini
• This Scammer Used Venmo to Steal $25,000 USD Worth of Camera Gear

Original Submission