Billions of dollars at risk on Venmo, PayPal says federal regulator

COLUMBIA, S.C. (CNN)— A federal regulator is warning people not to store cash on platforms like PayPal or Venmo.

Consumer Financial Protection Bureau Director Rohit Chopra issued a statement saying more people are using such apps to keep their money.

Some are even having paychecks directly deposited to these apps.

The problem is–unlike traditional banks—these platforms are not insured by the federal government. If they go under there’s no recourse and the money is gone.

The Financial Technology Association admits that’s true, but points out it’s unlikely the services would collapse.