Regulator warns of vulnerability of money stored in payment apps like Venmo and PayPal.

The Consumer Financial Protection Bureau (CFPB) has warned consumers not to store money on payment apps such as Venmo, Cash App or PayPal, as the money is not automatically insured by the government and could be completely lost if the companies fail. The CFPB recommended that users move money off their payment apps and into their bank accounts. Payment companies have less oversight than traditional banks in how they store and invest users’ funds, allowing payment companies to possibly invest in risky assets.