Scammers often say that P2P payments are protected by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Association) Why is this wrong? The FDIC/NCUA only protects money when it is being transferred between people. The FDIC/NCUA only protects money when it is more than 250,000 The FDIC/NCUA only protects the recipient and not the sender, so they are protected but you are not when you send money. The FDIC/NCUA only protects money that is being held in a financial institution's accounts, not when it is transferred.

The correct answer is: The FDIC/NCUA only protects money that is being held in a financial institution's accounts, not when it is transferred.<br /><br />The FDIC (Federal Deposit Insurance Corporation) and NCUA (National Credit Union Administration) are government agencies that provide deposit insurance to protect depositors in the event of a bank or credit union failure. This insurance coverage applies to funds held in checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs) at participating financial institutions.<br /><br />However, this deposit insurance does not extend to funds that are being transferred between individuals through P2P (peer-to-peer) payment platforms or other non-bank payment services. When you initiate a P2P payment, the funds are typically moved directly from your account to the recipient's account, rather than being held in a financial institution's account. As a result, the FDIC/NCUA insurance coverage does not apply to these types of transactions.<br /><br />It is important to note that P2P payment platforms and other non-bank payment services may have their own security measures and fraud protection policies in place, but these are separate from the deposit insurance provided by the FDIC/NCUA.