How to tell if a money app is safe to trust

This page helps you judge a money app before you trust it. It is general information, not financial or legal advice. We do not rate or recommend any app.

Why does it matter if the app is a bank?

Because the protection is different.

• A bank account at an FDIC insured bank is insured up to at least $250,000 per depositor. That holds whether you bank at a branch, on the bank's website or in the bank's own app.
• A nonbank company (often called a fintech) is never FDIC insured itself. The FDIC says money you send to one is not covered until the company puts it in an insured bank, and only if other conditions are met, such as keeping records of whose money is whose.
• If the nonbank company goes bankrupt, FDIC insurance does not protect you. You may get some or all of your money back through a court process, but it can take time.

So the FDIC suggests extra care with money you need for rent, food and bills.

The same idea applies to payment apps. The FTC explains that when someone sends you money in a payment app, it goes into your app balance, not straight to your bank. You can leave it there or move it to your bank account. Moving it to your bank is the safer habit for money you need.

The 10 minute safety check

Do these before you add money or link your bank.

1. Did you get the real app? Scammers build fake apps that steal information or lock your phone. Download only from your phone's official app store. Type the company name yourself; do not use a link from a text or a social media ad.

2. Who holds your money? Read the app's terms or "legal" page. Find the name of the bank. If the app says your money is FDIC insured, the FDIC says to identify the specific bank, then confirm it on BankFind. You can also call 1-877-ASK-FDIC (1-877-275-3342) and ask.

3. Is the company licensed in California? In California, the Department of Financial Protection and Innovation (DFPI) licenses money transmitters. That includes companies that hold stored value, like many app balances, and companies that send money. Use the DFPI's search to look up the company name.

4. What does it ask permission to see? The FDIC warns about apps that ask for odd permissions, such as access to your contacts, text messages, stored passwords or card numbers. A money app has no need for your contacts list to hold your savings. Say no, or skip the app.

5. What are the fees? Look for fees to send, to receive, to move money to your bank fast, to load cash and for being inactive. Write them on the checklist.

6. Can you reach a person? Find the help page inside the app. Is there a way to report a problem? Save it now, before you need it.

7. Can you lock it down? The FTC says to protect payment apps with multifactor sign in or a PIN. Turn that on the first day.

How do I use a money app safely every day?

• Send only to people you know. Payments in these apps are hard to get back once sent.
• Check the name and number twice before you tap send.
• Never share your sign in code. No real company or agency will call and ask for it.
• Move money you need into your bank. Keep only what you will spend soon in the app balance.
• Call before you pay a surprise request from someone you know. Their account may have been hacked.
• Do not pay to claim a prize. The FTC lists this as a common scam.

What if I sent money to the wrong person or a scammer?

Act fast. Every hour counts.

1. Report it in the app. Use the app's help or support section. Ask them to stop or reverse the payment.
2. If the app is linked to your bank or debit card, call your bank or credit union too.
3. Report it to the FTC at ReportFraud.ftc.gov. On October 21, 2026 the site showed a notice that it was closed by the federal government shutdown. If it is still closed, report to the DFPI (step 4) now and to the FTC when it reopens.
4. Report the company if it was unfair or would not help: DFPI online or 1-866-275-2677, or the CFPB at (855) 411-2372.
5. Keep proof. Take screenshots of the payment, the messages and the profile of the person you paid.

Be careful of anyone who contacts you offering to "recover" your money for a fee. That is often a second scam.

What if money left my account without my OK?

If money left your bank or credit union account without your OK, through a debit card or another electronic transfer, federal law gives you protection. The CFPB explains:

• Lost or stolen card or PIN: tell your bank within 2 business days of finding out. Then you can owe no more than $50. Wait longer, and you could owe up to $500.
• A charge you did not make on your statement: tell your bank no later than 60 days after it sends the statement. After that, you could lose money for later charges.
• The investigation: the bank generally has 10 business days to look into it (20 if the account is new). If it needs more time, it must usually put the money back in your account for now while it keeps looking.

Ask the app company about its own process too, and report fast. Travel or a hospital stay that keeps you from reporting can extend these deadlines.

What about my personal information?

A money app collects a lot about you. Before you sign up:

• Read what the app says it collects and who it shares with.
• Give only what is needed to open the account.
• Turn off contact sharing and location if the app works without them.
• Use a strong, unique password, and the PIN or multifactor option.

If an app asks about your immigration status and you do not know why, stop and ask someone you trust. Opening a bank account does not require a Social Security number. See Open a bank account with an ITIN or consular ID.

Common questions

Is a payment app the same as a bank account? No. It may work with a bank, but the company itself is not FDIC insured. Check the terms.

Is my money safe if the app says "FDIC insured"? Only if the company deposits your money in an insured bank and meets the FDIC's record rules. Find the bank's name and check it on BankFind.

Is crypto in an app insured? No. The FDIC does not insure crypto, stocks, bonds or other investments.

My bank's own app or a payment app: which is safer for my paycheck? The FDIC says opening an account directly with an insured bank is the easiest way to be confident your money is safe. A bank's own app gives you the same insurance as the branch.

Does the new 1% tax apply when I send money abroad with an app? Not when you pay from a bank or credit union account, or with a debit or credit card issued in the U.S. Federal law (26 U.S.C. 4475) adds the 1% tax, since January 1, 2026, only when a money transfer is paid with cash, a money order, a cashier's check or something similar. If you are not sure how your payment counts, ask the company before you send.

Who can help me set up an app safely? A free financial coach. See Where to get free, trusted help with money and credit.

Who can help?

These are public agencies and free services. Contact them to confirm hours and languages. Being listed here is not a referral or a promise of service.

• FDIC: confirm a bank is insured and report suspected fake bank sites or apps. 1-877-275-3342. BankFind (fdic.gov)
• California DFPI: licenses money transmitters and takes complaints, with translation in more than 240 languages. Complaints: 1-866-275-2677. Money transmitter questions: (415) 263-8500. Submit a complaint (dfpi.ca.gov)
• CFPB: complaints about banks, apps and money transfers. (855) 411-2372. consumerfinance.gov/complaint
• FTC: report scams. ReportFraud.ftc.gov. Closed by the federal shutdown when we checked on October 21, 2026.
• Free money coaching: Where to get free, trusted help with money and credit

Is there a checklist I can print?

You work hard for your money. Taking ten minutes to protect it is a gift to your family.