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What are Cash App scams?
Cash App scams are frauds committed on the leading P2P payment platform Cash App. As the third most popular payment app after PayPal and Venmo, it has become a hotbed of illegal activity, with the number of customer complaints increasing at an unbelievable rate. 472% in 2020 compared to 2019.
Cash App allows users to instantly send and receive money from their phone, buy stocks and Bitcoin (BTC), and use a range of savings features. This functionality has allowed Cash App to rise to the top of the payments space and attract millions of users around the world. Unfortunately, this has not gone unnoticed by opportunistic criminals who use tried-and-tested tactics and increasingly sophisticated deception methods.
Below are some of the most common Cash App scams.
Cash App Phishing Scam
Phishing is one of the most common scams. Scammers try to get your sensitive information by posing as trustworthy entities – such as people, organizations and websites. Most phishing cases are carried out via email, but fake text messages and phone calls are becoming increasingly common.
Scammers may send you a legitimate-looking email on Cash App, asking you to confirm your login or payment details, or redirect you to a fake website. The image below shows a classic case of a phishing attempt.
Cash App phishing email. Source: Trend Micro
This email is not from Cash App. Rather, a scammer has gained access to your email and is using intimidation tactics to get you to reveal your account information. This will allow them to access your account at will – and transfer money wherever they want.
How to avoid this scam: When it comes to phishing scams, it can sometimes be difficult to tell fact from fiction. However, there are a few warning signs to look out for. The most important of these is the contact information. Look at the sender’s email address – are there any spelling mistakes? Does it have an authentic domain? [email protected] or something similar should set off alarm bells.
Cash App Flipping Scam
If you’re unlucky enough to fall victim to a flipping scam, a scammer will contact you online – via Instagram, LinkedIn, Facebook, or similar – and promise you a tempting “get rich quick” scheme. And if it sounds too good to be true, it probably is.
They ask for a relatively small amount – say $100 – and promise to make much more from it. They may provide pictures of fake cash notifications or ample bank balances to make everything look flawless. To gain your full trust, they might even “flip” some money for you, proving that whatever method they use works.
Unlike a traditional bank account, Cash App is not insured by the Federal Deposit Insurance Corporation (FDIC), so if your money is stolen, you won’t get it back.
Flipping scam in action. Source: Avast
It may seem harmless, but the above-mentioned scammer could make thousands of dollars with this scam. When victims are asked for a relatively insignificant amount of money, they are more likely to part with their money – and recommend that their friends do the same.
How to avoid this scam: You should Never send your money to someone you don’t know. And before you send it to someone you know, you should double-check that it’s actually the person asking for it. As mentioned above, scammers can gain unauthorized access to your account through phishing and other means. It’s possible that your friend who urgently needs to borrow $1,000 isn’t your friend at all.
Cash App Gift Giveaway Scam
The platform’s popularity has grown enormously in recent years thanks to “#CashAppFridays,” where free cash, BTC, or stocks are given away via social media. It’s easy for participants to get their hands on the goodies. Simply reply to the relevant post with your unique “$cashtag” and follow the company page on X, Instagram, or similar platforms.
Now criminals have jumped on the bandwagon and are abusing the hashtag for their own sinister purposes. They contact people who replied to the original post, congratulating them on their “win” and leaving instructions on how to claim their prize. Usually, this involves sending them money via Cash App.
Fraudster tries to exploit Cash App Friday. Source: Tenable
Social media makes it easy for scammers to carry out scams like the one described above. Often, perpetrators set up an account with the sole intention of scamming people out of their money. However, in other cases, they think more carefully and create profiles months in advance to lend some credibility to their wild promises.
How to avoid this scam: You will never be asked to send money to Cash App. Period. If you are asked to do so, you are being scammed. Put the phone down and don’t be fooled.
Cash App fake security warning scam
With Data breaches in 2024 This scam, which is reaching epidemic proportions, works by creating fear in victims. The scammer sends them a fake security alert – usually via email or SMS – claiming their account has been compromised and an immediate password change is required.
You will then be redirected to a website and asked to update your login information. The scammer will then have full access to the account. From there, they can lock you out and transfer you money at will.
Fake security warning scam. Source: Avast
These scams exploit real fears about privacy and online security to extort money from unsuspecting victims. As mentioned, your funds on Cash App are not insured by the FDIC, so it’s nearly impossible to get them back.
How to avoid this scam: With scams like this, it’s important not to panic. The scammers want you to act in haste so you’re less likely to verify the information they give you. Take a deep breath and contact Cash App through official channels to find out if it’s true or not.
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Cash App Fake Debit Card Scam
This works on the basis that scammers already have access to your information. Once they get hold of that information, they can request Cash App debit cards – a legitimate Cash App offer – sent to your address, with instructions on how to download the app and get started.
Behind the scenes, they have already set up an account in your name – with control over the login information. Once you deposit money into the account, they have access to it. Scams of this type are less common, but just as malicious.
The dark web has created an illegal marketplace where your personal information is traded for as little as $5 per Social Security Number (SSN). In this environment, we recommend being cautious of any official communications regarding financial and information security matters.
How to avoid this scam: Receiving a debit card that you did not request is a clear sign that your information has been stolen. You should contact Cash App immediately and follow their instructions.
