PayPal Says CFPB Regulators Probing Accidental Venmo Payments

The Consumer Financial Protection Bureau has asked PayPal Holdings Inc. for information about how it treats customers who accidentally send a Venmo payment to the wrong person.

The agency has long been looking into Venmo’s practices related to unauthorized funds transfers and collections processes, but PayPal included the additional details about the probe in a regulatory filing Friday. The San Jose, California-based company said it continues to cooperate with the CFPB on the matter.

The move comes as scam artists have increasingly sought to use person-to-person payment systems including Zelle to trick consumers into sending them funds. As a result, ...