It’s amazing how many ways you can send money to your friends.
I still remember when PayPal
PYPL
was the only way, but nowadays, you can send money through Venmo, Cash App, Zelle, and half a dozen other apps.
The challenge with all these apps is that they all work slightly differently, and scammer loves how unsuspecting the average person is.
When it becomes easy to send money, scammers have figured out ways to trick people into sending it to the wrong person. And with many of these apps, it’s hard to recover your money if you send it to the wrong person.
To protect yourself and your money, it’s essential to know how these Cash App scams work so you can see the common red flags and avoid being taken.
What Is The Cash App?
The Cash App is an app developed by a company called Block
SQ
. Block is a publicly traded mobile payment company that runs several other apps, such as Square, Afterpay, and Tidal.
The Cash App is their payments app, and it is a convenient way to send money to other people. It’s a financial services platform, partnering with Lincoln Savings Bank and Sutton Bank, that offers bank-like services.
The benefit of using the Cash App is the convenience. You can send money to a friend without paying a fee, which is helpful if you’re splitting a bill or otherwise owe someone some money.
What Are Some Common Cash App Scams?
As you’d expect with an app that makes it easy to send money to someone else, scammers have tried to figure out ways to use it to their advantage.
There are a lot of Cash App scams; here are a few examples:
Scam Payments Requests
Scammers can target Cash App users by sending them payment requests with misleading or fake information.
They may use fake profiles, posing as friends or familiar businesses, to trick users into accepting these payment requests.
Sometimes, they even send money to the Cash App user and then say it was an accident. Then they ask for a refund, but the money was initially sent from a hacked or stolen account. The user sends back the money, but now they’re left with the headache of dealing with the original fraud.
Fraudulent or Spoofed Cash App Support Calls
Another common scam is when someone contacts you and claims to be part of the Cash App support staff. This happens with credit cards and banking very often. They will contact you and ask you for sensitive information, such as your password, PINs, etc. Sometimes they’ll ask you just to confirm some information which seems innocent but has an ulterior motive.
If someone ever calls you claiming to be from support, politely hang up and call the bank yourself. This is the only way to know whether you’re speaking to someone at the bank.
Winning Prizes Or Sweepstakes You Never Entered
Have you ever won a prize for a contest you never entered?
No!
No one in the history of humanity has ever won anything this way!
But scammers will try to trick you into believing you’ve won something; you just need to pay a small fee to get your reward. Maybe you won a car and can claim it once you’ve paid the taxes for it. Perhaps you won a sweepstakes and need to give them your banking information so they can deposit it.
Scammers are very sneaky and very clever! But if you really won a prize or sweepstakes in the Cash App, they have your information so they don’t need to ask you for it. They can deposit it into your account directly.
How To Avoid Cash App Scams
The key to avoiding all Cash App scams, and many scams in general, is to be skeptical about everything.
Don’t respond to messages, calls, or requests from strangers. Don’t give your information out to anyone. Don’t believe anything anyone says unless you know them and can see them in front of you.
You avoid many common Cash App scams by being extraordinarily cynical and skeptical.
What To Do If You’re Scammed
Sadly, even the most diligent users can still get scammed. We all make mistakes.
If it does happen to you, report it to Cash App if this happens to you or a friend.
- Open Cash App on your phone
- Tap your profile picture at the top right
- Scroll down and tap “Support”
- Scroll down to “Chat”
- Explain your situation and the scam
- Alternatively, you can call 800-969-1940
They will be able to advise you on what to do next based on the specifics of the scam.
Next, you’ll want to let any affected bank or credit card companies know that you’ve been scammed. Based on the scam, They can advise you on what to do next.
Finally, you can file a complaint with your local police department or the Federal Trade Commission.
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