10 common cash app scams and what to do if you’re scammed

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Unfortunately, scams are everywhere these days. Scammers can call you, text you, send you Instagram messages and, believe it or not, they have even found a way to infiltrate you. Payment apps. Yeah, silver– scammers are hiding even on peer-to-peer money transfer apps– precisely where you can assume you would be safe. But all the security and encryption in the world won’t stop everyone from falling into the trap. After all, scammers will scam.

That being said, there is is there’s a lot you can do to protect yourself…and your money. First of all, you should know that any money transfer app, including the Cash app, is susceptible to financial fraud. Neither app is particularly worse than the other, although Cash App seems to be struggling lately.

The stats prove it: Cash app fraud complaints are up 472% since 2020, according to the Federal Trade Commission (FTC) reports. The reasoning ? People are more vulnerable than ever and unfortunately others will take advantage of this vulnerability.

“Fraudulent payment scams are the ones I’ve seen people fall victim to all too often,” says Kristen BoligCEO of security nerd. “A lot of scammers seek to make their posts truly legit, getting rid of misspellings and other signs that immediately indicate a post is fake, which is why so many people fall in love with them.”

Don’t be scammed! Read on to learn 10 of the most common Cash App scams, plus tips on how to avoid getting scammed.

10 cash app scams

1. Pretending to be customer support or a company representative

Ugh-that’s almost too easy. Cash app scammers will most often try to impersonate customer service or another company representative in order to appear legitimate. They will contact you by text, phone or even direct message.

“Last year, I made the unfortunate decision to keep a large sum of money in the then-popular Cash app,” said Alex Mastin, CEO and Founder of HomeLands recount Parade. “Eventually I forgot about the money until one day a Cash App support representative called me and wanted to help me use the money deposited in my account. Naturally, I didn’t think much to the situation and let the caller guide how to transfer the money.”

It is important to note that the Cash app does not offer any live customer support. The only customer service offered by the Cash app is a support chat system. So if someone contacts you about your balance or app usage in general – outside of the app – that’s a total red flag.

“After giving the apparent representative some details, all my money deposited in the account suddenly disappeared,” Mastin continues. “The caller got my number blocked and that’s when it all made sense. I had been scammed by someone claiming to be a Cash App rep. A big money was lost and even when I emailed customer service they took days to respond , eventually freezing the account I would advise users to understand that Cash App only has a system of automated chat for customer support, so any other real time call must be a scam.

Related: How to buy smarter, not harder

2. Selling items that are too good to be true

Cash App is not a marketplace for the sale of goods. Yet another popular Cash App scam involves selling expensive products on the platform like concert tickets, apartments or even dogs(!!!). If someone promises you some type of good in exchange for payment on the Cash app, cancel the mission quickly. Peer-to-peer money transfer apps like Cash App have become extremely susceptible to this scam trend since the schemers know that there is no buyer protection included in the app.

After first asking you for money, before showing you the good, the scammer will take the money and then the ghost.

3. Get Random Deposit First

No way it’s a scam if you get a deposit first, right? Bad.

“I randomly received $1,000 in my Cash App out of the blue one day,” said Cash App user Kevin Nguyen. “This is a fairly common scam that I have heard of before. The best approach that I know of is to just ignore it and report it to the company as a potential scam. The money could come from an illegitimate source and removing it may cause problems down the road.”

And Nguyen was right.

“Finally the money disappeared after about 40 days without notification from me,” Nguyen adds.

Obviously, the random deposit was meant to be some kind of bait to lure the Cash App user. Fortunately, Nguyen knew better.

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4. To claim your money, you must first pay

This is an immediate red flag. So you won money or you owe money and yet you have to deposit money first to claim it? It’s a hard no. And while it may seem intuitive, many people succumb to it on a daily basis.

“In these types of scams, scammers tell users that they have a payment or an amount of money to claim, and to claim it, they have to send a small amount of money,” says Bolig. “Cash App will never ask its users to pay for the funds, so this type of request should be an immediate red flag.”

5. Ask for your social security number

Again, a hard no. As soon as someone asks for your SSN, close the app. Don’t.

“Lots of scams happen on similar apps,” said Emma Gordon, founder of USSalvageYards.com. “The first scam is to scam people with money by asking them for information such as a social security number. Don’t! It can lead to identity theft that you don’t want. The second Scam is having a fake account or person asking for money. This is also a form of identity theft. We try to make sure that you are as safe as possible when using similar apps. to the Cash app.

6. False coronavirus programs

It’s especially awful that someone even wants think to take advantage of the current global health crisis, but alas, here we are. Some scammers will actually send a message, offering a grant or relief package in the wake of COVID-19. It may be in the form of a COVID-19 lottery or some type of giveaway related to coronavirus relief, ie. Hey, you’re vaccinated! Congratulations, you won $$$.

It may sound somewhat legit to begin with, but the second you are asked for any kind of financial information, drop the scheme. If you are asked to give money or bank account information, there is no way you have won any prize and consider it a scam instead.

7. Silver Flips or Circles

When we think of a “flip”, we may think of “flipped houses”, like buying a house for very cheap, renovating it and then reselling it for more, making a profit. Well, the same thing happens among Cash App scammers. This type of scammer will ask you to send money in exchange for a bigger sum, ie. I’ll turn your $10 into $50. Sounds too good to be true, right? It absolutely is. If someone asks you to send them money first, chances are it’s a total sham. This type of scam is also known as money circle and is specifically designed to have your deposit but never inherit any money.

“I’ve been a victim of cash flips before. Someone recommended cash flips on social media,” said William Cannon, founder of Signaturelyrecount Parade. “His name was John. He said that I will just invest a small amount for registration. The money invested will be used as a part of the capital of the said company. Once the products are sold, my money will be doubled. The man who introduced this company looks like a legitimate member of the company because he has a copy of a certain license of the company And the reason I trusted him is that he also asked for my friends and family about this offer. He pointed out a close friend of mine who had joined their company. He had a picture of my friend in their org chart.

Cannon adds, “Thanks to his compelling explanation and tactics, I invested in their business without hesitation. I invested about $50 in their Cash App. After this transaction, I never heard from man. This gives me a clue to call my friend. It was a very late action to call my friend. It was late to know it was a scam.

8. False payment scams

You may be selling something. Someone contacts you to let you know they are “interested” in the item and will make payment through the Cash app. Only you do not receive said money. The scammer then tricks you into believing that he actually sent the money twice and coerces you into paying it back with real money. Except they never paid you in the first place.

9. Romantic promises

Random people texting you, promising to love your hand and foot? But only on Cash App? It’s suspicious.

10. #CashAppFridays

Perhaps the most confusing Cash App scam out there, #CashAppFridays comes from a very legitimate source: the app itself. All Friday, Cash App uses this hashtag to promote its own giveaway program that offers consumers cash prizes. However, others who lurk in the shadows have been known to take advantage.

Fake accounts looking for a payout will also use the hashtag, letting you know you’ve won and to claim the giveaway you need to pay first or provide login credentials. Do not fall into the trap ! If you really win any of the app’s #CashAppFridays, you will never be asked to give any money or credentials first.

Related: 101 Inspirational Dave Ramsey Quotes That Will Help You Learn How To Be A Millionaire

How to Dispute a Cash App Scam

With no buyer protection included in the Cash App, it can be quite difficult to dispute an unwarranted charge. Yet there are ways. If you suspect that you have been the victim of a Cash App scam, select the transaction by pressing the ellipsis button—”…” Next, click “Need Cash App help and support”, then click on “Dispute this transaction”.

This will initiate an investigation into the transaction. However, there is little chance that you will be reimbursed. Remember that the app itself does not provide buyer protection, so there is absolutely no guarantee that you will receive a refund even if you dispute a claim. Still, if you really feel like you’ve been scammed, it’s worth investigating. This way hopefully no one else falls for the same scammer.

Next, money affirmations to attract wealth.

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