Cash App is a mobile peer-to-peer (P2P) payments app that has taken the world by storm in recent years. The bad news? It’s popular with scammers, too.
Fraud is on the rise, with the Federal Trade Commission (FTC) reporting that scammers claimed $10 billion in stolen funds last year. As a financial platform, Cash App is an obvious target, with 9% of its users falling victim to predatory practices, according to CNBC.
Below, we’ve outlined some of the biggest scams to watch out for in 2024, with steps you can take to make sure you’re not caught out.
What Are Cash App Scams?
Cash App scams are cases of fraud perpetrated on leading P2P payments platform, Cash App. As the third most popular payments app, behind PayPal and Venmo, it has become a hotbed of illicit activity, with customer complaints increasing by a scarcely believable 472% in 2020 compared to 2019.
Cash App enables users to send and receive money instantly from their phone, buy stocks and bitcoin (BTC), and take advantage of a raft of savings features. This functionality has allowed Cash App to shoot to the top of the payments space, attracting millions of users around the world. Unfortunately, it hasn’t escaped the notice of opportunistic criminals, who are deploying tried and tested tactics – along with increasingly sophisticated methods of deception.
Below, you’ll find some of the most common Cash App scams.
Cash App Phishing Scams
One of the most common scams around, phishing occurs when bad actors attempt to extract your sensitive information by posing as trustworthy figures – which can include people, organizations, and websites. Most phishing cases unfold over email, but fake text messages and phone calls are growing in prevalence.
On Cash App, fraudsters may send you a legitimate-looking email requesting that you verify your login or payment credentials, or direct you towards to a fake website. The image below illustrates a classic case of attempted phishing.
Phishing email on Cash App. Source: Trend Micro
This email did not originate from Cash App. Rather, a fraudster has obtained access to your email and is using scare tactics to try and manipulate you into giving up your account information. With this, they can access your account at will – and send funds wherever they please.
How to avoid this scam: With phishing scams, it can sometimes be hard to separate fact from fiction. There are, however, a few red flags to watch out for. Chiefly among them is contact information. Look at the sender’s email address – are there any spelling mistakes? Does it have an authentic domain? CashAppSecurity@gmail.com, or similar, should get alarm bells ringing.
Cash App Flipping Scams
If you’re unlucky enough to be subject to a flipping scam, a fraudster will make contact with you online – through Instagram, LinkedIn, Facebook, or similar – with a tantalizing ‘get-rich-quick scheme.’ And if it sounds too good to be true, that’s because it probably is.
They’ll ask for a relatively small amount – say, $100 – and promise to turn it into much more. They might provide images of fake cash alerts or bountiful bank balances, to make it all seem above board. To gain your unimpeachable trust, they might even ‘flip’ some money for you, proving that whatever their methodology is, it works.
Unlike a traditional bank account, Cash App isn’t Federal Deposit Insurance Corporation (FDIC) insured, so if your money is stolen, you’re not getting it back.
Flipping scam in action. Source: Avast
It may seem innocuous enough, but the scammer above could amass thousands of dollars from this scheme. By asking for a relatively inconsequential amount of money, victims are more likely to part with their cash – and recommend their friends do the same.
How to avoid this scam: You should never, ever send your money to anyone that you don’t know. And before sending it to somebody you do, you should verify that it’s actually them who is asking. As mentioned above, scammers can gain illicit access to your account through phishing and other means. It’s possible that your friend who urgently needs to borrow $1000 isn’t really your friend at all.
Cash App Giveaway Scams
‘#CashAppFridays’ – in which free money, BTC, or stocks are given away via social media – have seen the platform’s popularity soar in recent years. It couldn’t be simpler for respondents to get their hands on the goodies. Simply reply to the relevant post with your unique ‘$cashtag’ and follow the company page on X, Instagram, or similar.
Now, criminals have jumped on the bandwagon, hijacking the hashtag for their own sinister ends. They’ll reach out to people who responded to the original post, congratulating them on their ‘victory,’ and leaving instructions on how to claim their prize. Usually, this includes sending them money via Cash App.
Scammer tries to take advantage of Cash App Friday. Source: Tenable
Social media has made it easy for fraudsters to practice scams like the one above. Often, offenders will set up an account with the sole intention of tricking people out of their money. On other occasions, however, they’ll put more thought into it, with profiles being set up months in advance to lend a degree of credibility to their wild promises.
How to avoid this scam: You will never be required to send money to Cash App. Full stop. If you’re being asked to, you’re being scammed. Put the phone down and don’t be tricked.
Cash App Fake Security Alert Scams
With data breaches in 2024 reaching epidemic levels, this particular scam works by provoking fear in the victim. The scammer will send them a fake security alert – usually via email or text message – claiming that their account has been compromised and an immediate password change is required.
They’ll then be directed to a website and prompted to update their credentials – and the scammer will seize full access to their account. From there, they can lock you out and send money as they please.
Fake security alert scam. Source: Avast
These scams play into real fears around privacy and online security to extort money from unaware victims. As previously mentioned, your funds on Cash App are not FDIC-insured, so it’s almost impossible for them to be recovered.
How to avoid this scam: With scams of this kind, the key is to not panic. The scammers want you to act out of urgency, so that you’re less likely to verify the information that they’re feeding you. Take a breath, and reach out to Cash App through official channels to determine whether or not it’s true.
Cash App Fake Debit Card Scams
This works on the basis of fraudsters already having access to your information. Once they’ve acquired it, they can request Cash App debit cards – a legitimate Cash App offering – to be sent to your address with instructions to download the app and get started.
Behind the scenes, they’ve already set up an account in your name – with control of the login credentials. As soon as you put funds into the account, they have access to them. Scams of this kind are less common, but equally as malicious.
The Dark Web has given rise to an illicit marketplace in which your personal information is traded for as little as $5 per Social Security number (SSN). In this climate, we recommend exercising caution with all official communications related to matters of finance and information security.
How to avoid this scam: Receiving a debit card that you didn’t request is a clear indication that your data has been stolen. You should contact Cash App immediately and follow their instructions.
