Sending and receiving money is easier than ever with the help of smartphone apps. While this transaction software is a convenient tool for splitting café bills and paying for services, it’s also an easy way for scammers to take advantage of you.
You can understand Cash App’s popularity. Its millions of users use it to digitally keep track of their finances. But can you trust it? And are there any scams you need to watch out for?
Is Cash App Legit?
The Cash App software itself is safe to use. It is a legit app that allows users to receive direct deposits, tax returns, and stimulus checks. Cash App has over 30 million active users, 7 million of who even use their free debit card account. Using cutting-edge encryption and fraud detection tech, the company does all it can to secure your information and money.
Cash App is incredibly simple to use, making it a great money solution for everyone. Unfortunately, these easy-to-use features leave some people vulnerable to scams.
Although the app itself is secure, you need to practice internet safety to avoid getting scammed. Cash App scams are on the rise…
What Is a Cash App Scam?
Cash App scams involve a scammer tricking a registered user into having money transferred out of their account under false pretenses. These activities are illegal and you need to report any examples of misuse of the service. But it is not always possible to get that money back. It’s often difficult to track down the perpetrator once the money is gone.
There are a few different types of Cash App scams. While they vary in nature, they generally get money from you using one of two techniques. Both involve fake Cash App “representatives” reaching out to you.
Vishing/ Phishing
Vishing and phishing scams involve tricking an individual into handing over their user information. Scammers tell victims they are official Cash App representatives helping with account problems. These involve fake customer service e-mails (phishing) or phone scams (vishing).
Scammers may send links to a fake website that looks exactly like the official Cash App interface and prompt you to log in. Others may tell you your account was hacked or inform you about fake transactions that need immediate action.
After promising to help with account services, they sign into your Cash App and transfer money to their own accounts. There are reports that scammers stole over $20,000 from a single user by draining his Cash App balance and further stealing from his connected base account.
Giving scammers your sensitive information compromises any other account you have that uses the same passwords. It’s easy for them to use the information you gave to figure out your email login or Paypal account (which is why we always advise you use different login credentials for all your services, or a secure password manager).
Fund Transfers
Scammers don’t need your account details to get money. Sometimes, they trick users into transferring the money themselves! All they need is a fake narrative to convince you into sending money to their Cash App accounts.
A more straightforward scam involves begging for money. Some con artists try to tell you they are in dire need of a loan and will later transfer the money back (with interest). These scams are not as convincing as they used to be, so savvy scammers took these schemes to the next level.
Many cybercriminals reach out to typically cash-strapped groups on Facebook, such as single parents or students. They promise victims free money through fake dating arrangements, remote work, or contests. Sometimes, they will even share falsified transfer confirmations or screenshots of them sending money to other people.
Scammers offer ridiculous amounts of money, and “all you need to do is send a small transaction fee.” They ask for the email address associated with your Cash App account and send you a fake customer service email with instructions on where to send your transfer fee. Most of the time, they ask you to send this to another Cash App account.
After sending the fee over, they delete their accounts. While these scams don’t compromise your information in the same manner as phishing and vishing, con artists make a lot of money this way. It’s easier to trick 10 customers into sending a “small fee” of $100 than scamming one out of $1,000. Those small transfers add up fast.
How to Spot Cash App Scams
It’s difficult to recover from being a victim of cybercrime.
Contacting officials to report scams is essential, but can be a complicated process that involves not having your money for quite some time. Preventing these situations is a more effective strategy. Some common red flags let you know your online interaction is a Cash App scam in progress.
They Request Sign-In Information
No Cash App representative will ask you for your login information. When talking to a representative, they use other information to confirm account ownership.
Their Messages Are Suspicious
Official Cash App emails don’t come from an address with a string of 40 digits following the name.
Also, be aware of suspicious domains. The official Cash App customer service center won’t contact you through a Gmail account. Very poorly written English and broken email templates are further signs of a scam.
They Request Transaction Fees
If something seems too good to be true, it probably is.
Any “free” money ventures that involve paying a fee are a scam. Cash App does not require recipients to send payment before receiving funds manually.
Is Cash App Safe?
Cash App is a practical and safe app to handle your financial transactions. While its services are secure, you need to practice internet safety to avoid Cash App scams.
Although Cash App scams are financially devastating, identifying the signs of fraudulent Cash App transactions is easy. Always use apps responsibly to make the most of your experience.