Do you use the Cash App to send or receive money? Whether you want to pay for dinner or transfer money to your kid, this mobile payment service is quite popular now. However, just like any other popular financial platform, the Cash App is also prone to scams and you must be aware of them.
Cash app is a peer-to-peer payment service that offers convenient money transactions. It’s similar to other apps like Venmo, PayPal, etc. These apps are reliable and usually safe. However, since they involve money, it’s not untouched by scams either. But before we move on to highlight the different fraud tactics, let us understand how the Cash app works.
How does a Cash App work?
To start using the Cash App, first, you must sign up and create a free account with your email and phone number. This allows you to send and receive money from other Cash app users residing in the same country. Enter the code sent to your phone or email.
Next, enter your debit card details to link your bank account, and select a $Cashtag, a unique username. This will help you to carry out the transactions through the Cash App. You can also invite your friends to register with the Cash app and earn cash. Now, enter your Zip code, and you are ready to go!
To start transacting, tap on the $ icon at the lower end of the app and select Request or Pay along with the desired $Cashtag. You can also use a phone or email to search for another user. Moreover, you can also request a Cash Card which is a usual Visa debit card connected to a specific Cash app account, and that can be used for both purchases and ATM withdrawals.
Pros and cons of a Cash app
The Cash App is a great way to go cashless:
- No headache of carrying cash or falling short of cash.
- Pay your bills on the spot or transfer/receive money right away.
- Flags possible scams with AI.
- Security features like PIN and biometric verifications or login codes make sure your account is safe.
- Encrypts user data, Face ID, or account login alerts are among its other notable security features.
- Option to disable card spending as soon as it is lost or stolen and you report it.
- Offers buyer protection and cash support for any authorized spends on your card.
Despite all the great features and security measures, users often wonder if Cash App is safe. While it largely depends on how you use the technology, a few risks are attached to it. Some of the precautions you can take are:
- Avoid keeping money in the Cash App.
- Abstain from transferring money from strangers.
- Unlike a debit/credit card, Cash App transfers are not protected against fraud or theft.
Top Cash app scams you must be aware of
Now that we know about some of the risks associated with mobile payment services, you must be aware of scams before you transfer or receive money on the Cash App. Here’s a detailed guide on how to identify a scam or what could be a potential scam.
- Impersonating as Cash App support
- Sudden deposits
- Selling expensive products
- Money flipping
- False payment claims
- Cash giveaway promotion scams
- Government grants
- Asking for Social Security Number
- Phishing Scams
- Pet Sale
- Rental frauds
- Romantic traps
- Investment scams
- Fake security alarms
- Gift card scams
1] Impersonating as Cash App support
Fraudsters often pose as executives from the Cash App support and ask you for your details. They would either contact you via phone or text asking you for the OTP, sign-in code, or PIN that makes it appear as a legitimate call. In reality, according to Cash App, they never call you for such details and would never request a payment, purchase, etc.
When anyone asks you for your account balance or usage, know that it’s a Cash App fraud and disconnect or delete the message. When in doubt, you can contact CashApp support to verify the authentication of the call/message.
2] Sudden deposits
If someday you receive a cash payment out of nowhere, don’t be surprised. When your gut feeling says that things are too good to be true, it’s right. These are fake transactions, likely baits that are mostly made from a stolen bank account number or a credit card.
Someone will contact you saying it was transferred accidentally and will ask for a refund. When you return the money, it will be yours, not the transferred amount. So, next time you receive a random payment, don’t be excited and block the user immediately. Never contact the sender; this will get you an infinite loop of scams. Instead, you should report this incident to Cash App support and ask them to nullify the payment.
Read: How to transfer Cash App balance?
3] Selling expensive products
Another very well-known Cash App scam is selling expensive make-believe items in the form of goods or services. You may get a call or text offering you premium gadgets or other electronic items, event tickets, etc. They will lure you with fictitious items, collect the payment, and simply disappear without sending you the products.
Remember that Cash App is NOT a platform where you buy or sell products. They remind you that all you can do is send and receive money. So, if you indulge in any such trade, the payment (Cash App to Cash App) cannot be canceled.
4] Money flipping
Money flipping or Cash App flipping is when scamsters ask you to send them money, and they would send double the amount or more than that in return. Forget a return on investment; you won’t even get the original paid amount back ever. So, avoid falling into these traps.
5] False payment claims
Another popular gimmick is that scammers will contact you, asking you for a due amount that you never owe to anyone in the first place. They may also claim that you won money, and to get the reward, you should pay some amount upfront. Who better than you to know if you owe money to anyone or not? So, don’t be scared and never pay heed to such claims. Neither should you get lured with something that sounds too good to be true and avoid any future hassle.
6] Cash giveaway promotion scams
#CashAppFridays is a popular and legit cash giveaway promotion by the app, but even that has caught the attention of scammers. This is also among the other well-known Cash app scams you must be aware of. You may receive a call or message with a fake hashtag claiming that you won the giveaway, but you would need to pay or share the login details to claim the award.
Raise your guard, as Cash App will never ask you for payment or login details to send you the winning prize for #CashAppFridays.
7] Government grants
Did you get a call or message offering you a government grant or relief payment? If you are not someone who ever requested the government for it or you think you qualify for one, it’s a scam. These are fraudulent schemes and have been running rife since the last pandemic. So, once they ask you for your financial details, you know you have to stay away.
8] Asking for Social Security Number
Always remember that your Social Security Number is usually requested by your employer, bank, or Government bodies. No other person or entity will just call you or message you asking for your SSN. If they do, it’s a sure scam. So stay alert and don’t give in unless verified.
Read: List of best Mobile Wallets in India to Make Online Payments
9] Phishing scams
Scammers can also resort to other means like sending Phishing emails that look professional and genuine, asking for your sign-in details, or forcing you to click on a link that can rob you of your personal information.
10] Pet sale
You may sometimes receive a random call or text from impersonators acting as pet (dogs or cats) sellers. You often see these kinds of sales posts on social media stating that you can own the pet in exchange for some cash payment. In reality, these pets are non-existent and your money would be gone.
11] Rental frauds
One of the other Cash app scams you must be aware of is where someone will contact you with the assurance that he will get you a rental property at a much lower rate than the current market rate in exchange for an advance deposit. The fact is, after they collect the payment, no one will ever show up and you lose your money.
12] Romantic traps
Scammers can also trap Cash App users through dating apps or social media posing as someone promising luxurious dates and gifts. We keep hearing how to practice caution while interacting with a stranger on social media and dating apps. The same applies to anyone asking for cash payments in exchange for romantic dates or dinners.
13] Investment scams
Considering the rising lifestyle cost, attractive investment opportunities can be tough to resist. Scammers take advantage of this situation and approach users with investment offers in Cryptocurrency. After you purchase the crypto, your money will simply vanish and never return. Or, they can even return the actually invested money and send some more back, luring you to send more. So, if you really want to invest in Crypto, make sure you do it through credible sources.
14] Fake security alarms
Just like phishing scams, you may also receive email alerts warning you that your Cash App account is hacked and your personal data is stolen. These emails may further contain fake links that ask you to change your login details, which are then used by scammers to defraud you of your cash.
Read: Are Chinese loan apps safe?
15] Gift card scams
Another type of Cash App fraud involves scammers making calls or texts offering you a gift card in exchange for advance payment and your gift card information. While you actually purchase the gift card, they steal the card with your details, and your money is lost. So abstain from sharing any personal details in rerun to anything that sounds fishy.
How to avoid Cash App scams?
Now that you know about the different types of Cash App frauds, make sure you protect yourself from such scams by following the below tips:
- Avoid disclosing your personal information to anyone.
- Abstain from getting into any financial transactions with strangers.
- Ignore or delete any emails that you suspect haven’t been sent from a legitimate email address.
- Make sure you do not click any suspicious links.
- If you have not received the service or the product, don’t pay for it.
- Avoid making rental deposits or pet deposits using the Cash App.
- Do not get lured by any offer that sounds too good to be true.
- Always double-check with the Cash App customer support for the authenticity of a call or text.
- Before making a payment, make sure you check if the money is going to the right person.
- Don’t forget to enable notifications.
How does Cash App detect scams?
Yes, Cash App does detect scams. They assign a dedicated team that thoroughly investigates your claim and then helps you raise it with them accordingly. The merchant will then review the transaction, and based on that information, Cash App makes the final decision. Once the investigation is successfully closed, you will be promptly notified of the result of the dispute.
What to do if a random person sends me money on Cash App?
Whether you sending or receiving money via Cash App, despite the security features, you should practice extreme caution. While you should not entertain anyone asking for upfront payments or get into suspicious deals, you should also review the sender’s Cash App profile to be sure. Some basic indications to check would be if the person has a verified profile picture and any positive ratings from users.
