Scammers and thieves use Cash App to steal people’s money, raising questions about the real security of this contactless payment app.
Is the Cash application safe?
Money transfer apps like Cash App have become increasingly popular as people ditch cash after the coronavirus, but scams on these apps are on the rise as well. While scammers are devious and often convincing, their scams also tend to share common traits that make them easier to spot. Here are the risks of using Cash App and how to avoid common scams that could make you, your information and your money vulnerable to criminals. To protect your financial and personal information from scammers, learn how to spot phishing emails, eBay scams, phone scams with area code, phone call scams, and online shopping scams.
Cash App Security Features
In most cases, Cash App is a safe and convenient way to transfer money to friends, family, and businesses. “Cash App is not inherently more or less secure than other legitimate peer-to-peer payment apps such as Venmo and Zelle,†said Eva Velasquez, president and CEO of Identity Theft Resource Center. Cash App even offers several security features that other money transfer apps don’t, including an AI-based feature that flags potential scams, text messages alerting customers to an unusual login attempt. and a prompt asking users to confirm a money transfer to someone who is not on their contact list. Rest assured that there is nothing wrong with using Cash App to transfer money in the blink of an eye, especially for times when you should never use your credit card for payment.
Risks associated with the use of Cash App
Although Cash App offers security precautions to protect its customers, “the way users engage with technology can make all the difference,” according to Velasquez. Scammers often take advantage of people who store money on Cash App like a bank or who are willing to transfer money to strangers. In addition, transfers via Cash App are not protected against fraud or theft, unlike traditional credit or debit card payments. Since Cash App treats money like cash, it is almost impossible to get the money back once it has been transferred. You better learn how to spot these common Cash app scams before they steal your money. FYI, other contactless payment apps, including Apple Pay, Google Pay, and Venmo, are also vulnerable to scams.
The most common cash app scams
1. Impersonate customer service
Cash App does not offer live customer support and encourages users to report any issues, including fraud and scams, through the app instead. However, many Cash App users have been tricked by crooks posing as Cash App employees through text messages, phone calls, or direct social media messages. These thieves create fake websites with fake Cash Support phone numbers, which victims believe to be real when they appear in a Google search. According to the Better Business Bureau, Cash App customers across the country have been duped with thousands of dollars by crooks claiming to be Cash App representatives.
When calling customer service, beware of anyone who asks you for personal information such as your PIN or Cash App login code. “Cash Support will never ask you to provide your login code, PIN, or other sensitive information such as your bank account information,†according to the Cash App website. “Cash Support will also never ask you to send a payment, make a purchase, download an app for ‘remote access’, or perform a ‘test’ transaction of any kind.†Adam Gordon, an Edutainer at ITProTV, recommends going directly to the Cash App website to find the customer support phone number or reporting the issue through the app instead. Beware of these Facebook Marketplace scams before shopping.
2. Fake #CashAppFriday offers
Every Friday, Cash App holds an official raffle where customers can win cash prizes. But there are also dozens of fake Cash App Friday events on Instagram, Facebook and other social networks using the official promotional hashtag #CashAppFriday. Scammers will create fraudulent raffles and messages to users asking them to transfer a few dollars through Cash App or share their login credentials for a chance to win. Users can send money or information, but they never earn anything in return.
If you want to participate in the official Cash App raffle, Gordon advises that you verify that the link to enter is from the verified Cash App Twitter account, which has a blue check mark next to the username. You should also avoid those other organizations and brands that scammers more often than not pass themselves off.
3. False COVID-19 programs
The coronavirus pandemic has been a boon to cybercriminals looking to swindle Cash App users out of their money. In fact, Cash App fraud complaints increased 472% during the pandemic, according to the Federal Trade Commission. Some scammers create bogus grant or relief programs that demand advanced payment or fees to receive benefits, while others advertise bogus lotteries or scams that claim you won a prize for having been vaccinated, says Velasquez.
While “it sounds plausible because there are legitimate lotteries in multiple states,” she says, there is a major red flag: these scammers will ask for credentials and financial information, as well as taxes or fees. to be paid in advance. If an offer seems fishy, ​​Velasquez suggests confirming with the organization via their official phone number. Think twice before providing personal account information to someone claiming to be a federal or state employee, which is also a sign that you could fall for these other coronavirus scams.
4. Money back
There’s a rule of thumb when it comes to Cash App scams: If it sounds too good to be true, it probably is, according to Gordon. For example, a popular social media scam promises to increase or “return” your money when you first send them money through the Cash App. If you send them $ 10 to $ 1,000, they claim, they will return double or triple the original amount to you. In another common Cash App scam, you are asked to send a certain amount of money in exchange for a higher rate from other people participating in the circle. Called a money circle, cash wheel, or pyramid scheme, these scams are designed so that you never get any money back.
To protect yourself from any of these scams, “your first line of defense is not to send money to people you don’t know,†says Gordon. Only keep your transactions between people you know and trust, no matter how good it looks. Also learn how to spot false donation scams.
5. Sell big ticket items through Cash App
Whether you want to get a purebred puppy, a lease for a new apartment, or a concert ticket for a sold-out show, you should never agree to pay through Cash App. Scammers know that Cash App does not offer protection to buyers, so they are more likely to ask their victims to pay for fake items through the app. Once the unsuspecting users pay the fees, the scammers will disappear without handing over the items.
Cash App recommends not sending payment to someone you don’t know and without verifying the legitimacy of the item. If you believe you have been scammed on the Cash app, you can dispute the charge through the app by selecting the transaction and pressing “…” -> Need help and support for ‘Cash application -> Dispute this transaction. The Cash App team will investigate your claim, but there’s no guarantee you’ll get your money back, Gordon says. Your money will be more secure if you limit your transactions to your close friends and family or keep a few dollars in your wallet for the times when it is best to pay in cash.
What to do if you think you’ve been scammed
If you believe you have been the victim of a Cash App scam, you should immediately report the incident to Cash Support and cut off contact with the scammer, according to the Cash App website. Velasquez suggests alerting the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3) if you’ve lost money. You should also take steps to change your Cash App account password and protect your other accounts, including choosing a unique passphrase of 12 characters or more, using a different password for each account, and saving all of them. passwords in a password manager. Invest in one of the most secure phones to avoid security issues in the future.
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