In a nutshell
While Cash App makes sending and receiving payments easy, you should also be careful and protect your information to avoid scams.
Common Types of Cash App Fraud
The goal of thieves or scammers is to get your money out of you, using Cash App as a method. In most cases, if something seems too good to be true, it probably is. The more you know about the most common types of Cash App scams, the better prepared you will be to spot and avoid thieves.
Many of these scams have spread over the years in various forms, such as giveaways, accidental payments, and phishing attempts.
1. Fake Giveaways
Some websites or social media accounts pretend to be hosting giveaways that are officially endorsed by Cash App. This means that you can enter their giveaway for prizes that are supposedly in partnership with Cash App. You may be required to provide information in order to enter the giveaway or claim a prize you have won, such as your login details and PIN.
Some scammers even ask you to send money to claim your prize.
2. Turn money over
Sometimes referred to as a “clearance fee,” some scammers claim they can help you make more money if you send them money first. You then get more money back, essentially “flipping” your money. Once you send money, you never hear from them again.
3. Payment claims
You may receive a request for payment from a scammer claiming to be a legitimate source that you owe money to. For example, you sold an item through an online marketplace and the scammer claims not to have received it and demands a refund. The scammer may even claim to have payment due to you (for example, unclaimed funds), but in order to receive it, you must first send money.
4. Payment deposit
If you want to book a service, like help finding an apartment or a custom birthday cake, the scammer might try to get you to pay a deposit through Cash App first. You send the money and the scammer is nowhere to be found.
5. Accidentally overpaid
You may receive a payment from a scammer claiming to be an accident and requesting that you repay the amount. Once you do, the scammer will dispute the money that they sent you through their bank or credit card company. This means that the money that you repaid actually came from your own funds.
6. Phishing attempt
Phishing is when scammers try to trick you into divulging your sensitive information. One of the most common ways to get your information is for thieves to take you to a fake website that pretends to be a legitimate one. There, you’ll be asked to enter your personal and financial information, which scammers use to commit identity theft or empty your bank account.
7. Fake Cash App Support
Someone posing as a Cash App representative may ask you to “confirm” details about your Cash App account or even other sensitive information. Similar to the phishing scam, thieves are trying to obtain your information to gain access to your funds or use your personal data for other unscrupulous purposes.
Is Cash App safe?
Yes, Cash App is just as secure as other types of mobile payment apps. You can send and receive payments, and use other features such as investment services and the ability to file your taxes for free.
Some of the security features that Cash App uses are:
- Encryption and fraud detection technology.
- Secure servers.
- Account verification and authentication.
- Privacy settings.
Of course, how safe Cash App is also depends on how you use it. For example, if you only use it to send and receive money from people in real life, then it’s probably fine. However, if you interact with strangers on the app, then you might end up with more than you bargained for.
Best Practices to Prevent Cash App Fraud
To prevent Cash App fraud, keep the following best practices in mind:
- Enable two-factor authentication: You will receive a one-time login code when you log in to your Cash App account. If you receive this code without requesting it, consider enabling two-factor authentication, which requires you to verify your identity in another way.
- Enable security lock: If you enable this setting, you’ll need to confirm every Cash App payment with your Face ID, Touch ID, or password.
- To turn on notifications: Getting notified every time there is activity or a transaction on your account can help you spot potential fraud and notify Cash App as soon as possible.
- Do not share personal information: It is better to be safe than sorry and not share sensitive information unless you share it with someone you completely trust.
- Verify the identity of the person or company: You want to make sure you are sending a payment to someone who is legitimate. Take the time to check their profile on Cash App and verify their identity through an online search.
What to do if you have been scammed
If you have been scammed, there are several steps you can take. First, you can report the incident to Cash App support and provide details of the incident. You can also try to dispute the transaction with Cash App as soon as possible.
Other steps you can take:
- Try to cancel the transaction as soon as possible or ask the recipient for a refund.
- Contact the bank or credit card company associated with your account and report fraud.
- Change your password on Cash App and enable two-factor authentication if you haven’t already.
- File a report with your local police.
- Block the scammer on Cash App and report him.
- Report the incident to the Federal Trade Commission (FTC).
The AP Buyline Overview: Protect Your Cash App Data
Cash App offers many conveniences and useful features, such as free tax filing and the ability to send and receive money to family and friends. Unfortunately, there are also scammers on the app who try to take advantage of unsuspecting people. Taking steps to protect yourself is well worth the time and effort it may take.
Frequently Asked Questions (FAQ’s)
Is it safe to give out your Cash App tag?
No, it is not safe. If you do, you are vulnerable to scammers and thieves.
How can I enforce a refund via Cash App?
Unfortunately, if you send someone money via Cash App, you can’t cancel the transaction. You’ll have to ask the recipient to refund the money.
What can someone do with your route number on Cash App?
If someone has your Cash App routing number, it might not be a big deal. However, if someone has your account and routing number, they can use this information to access your account and withdraw money. That’s why it’s important to keep your sensitive information safe.
