5 Common Cash App Scams You Need To Know About 2021
Scammers and thieves are using the Cash app to steal people’s money, which begs the question of how secure this contactless payment app really is.
Is the Cash App Safe?
Money transfer apps like Cash App have grown in popularity as people go without cash after the coronavirus – but scams with these apps are also increasing. While scammers are sneaky and often persuasive, their scams also share features that make them easier to spot. Here are the risks of using Cash App, and how to avoid the common Cash App scams that could leave you, your information, and your money vulnerable to criminals. To help protect your financial and personal information from scammers, learn how to spot phishing emails, eBay scams, area code scams, phone calls, and online shopping scams.
Cash app security functions
In most cases, the Cash app is a safe and convenient way to send money to friends, family members, and businesses. “Cash App is inherently no more or less secure than other legitimate peer-to-peer payment apps like Venmo and Cell,” said Eva Velasquez, President and CEO of Identity Theft Resource Center. Cash App even has several security features that other money transfer apps don’t, including an AI-driven feature that flags potential scams, text messages alerting customers of an unusual login attempt, and a prompt that prompts users to transfer money to someone confirm, he is not on your contact list. Rest assured there is nothing wrong with using the Cash app to transfer cash in an emergency, especially at times when you should never use your credit card to pay.
Risks when using the Cash app
While Cash App has safeguards in place to protect its customers, “the way users interact with the technology can make all the difference,” said Velasquez. Fraudsters often take advantage of people who, like a bank, store money on the Cash app or are willing to transfer money to strangers. In addition, unlike payments with a conventional credit or debit card, transfers via the Cash app are not protected against fraud or theft. Since Cash App treats money like cash, it is almost impossible to get the money back after the transfer. You’d better learn how to spot these widespread cash app scams before they steal your money. For your information, other contactless payment apps like Apple Pay, Google Pay, and Venmo are also vulnerable to scams.
The most common cash app scams
1. Posing as customer support
Cash App does not provide live customer support and instead encourages users to report issues, including fraud and fraud, through the app instead. However, many Cash App users have been fooled by scammers impersonating Cash App employees through text messages, phone calls, or direct messages on social media. These thieves create fake websites with fake cash support phone numbers that victims believe are real when they appear in a Google search. Cash App customers across the country have been defrauded of thousands of dollars by scammers claiming to be Cash App agents, according to the Better Business Bureau.
When you call customer support, watch out for people asking for personal information like your Cash App PIN or login code. “Cash Support will never ask you to provide your login code, PIN or other sensitive information such as your bank account information,” says the Cash App website. “Cash Support will also never ask you to send a payment, make a purchase, download a“ remote ”application, or perform a“ test ”transaction of any kind.” Adam Gordon, an edutainer at ITProTV, recommends direct Go to the Cash App website to find the customer support phone number or report the problem through the app instead.
2. Fake # CashAppFriday offers
Every Friday, Cash App organizes an official competition in which customers can win cash prizes. But there are also dozens of fake Cash App Friday events on Instagram, Facebook, and other social networks that use the official promotional hashtag #CashAppFriday. Scammers create fraudulent raffles and message users asking them to transfer a few dollars through the Cash app or share their credentials for a chance to win. Users can send the money or information, but they never get anything back.
If you’d like to enter the Official Cash App Sweepstakes, Gordon recommends double-checking that the entry link is from the verified Cash App Twitter account that has a blue tick next to the username. You should also stay away from those other organizations and brands that are most likely to impersonate scammers.
3. Fake COVID-19 programs
The coronavirus pandemic has been a boon to cyber criminals looking to cheat cash app users out of their money. According to the Federal Trade Commission, complaints of cash app fraud rose a whopping 472 percent during the pandemic. Some scammers create fake grant or aid programs that charge payments or upfront fees to get benefits, while others advertise fake lottery or freebie scams that claim you won a prize for vaccination, Velasquez says.
“It sounds plausible because several states have legitimate lotteries,” she says, but there is one important red flag: these scammers ask for proof of identity and financial information, as well as taxes or fees that are paid in advance. If an offer seems questionable, Velasquez suggests confirming this with the organization using their official phone number. Think twice before providing personal account information to anyone who claims to be an employee of the state or federal government, which is also a sign that you may fall for these other coronavirus scams.
4. Turning money
There’s one rule of thumb when it comes to cash app scams: if it seems too good to be true, it probably is, Gordon said. For example, a popular social media scam promises to increase or “flip” your money if you send them money through the Cash app first. If you send them $ 10 to $ 1000, they’ll send you back double or triple the original amount. Another common Cash App scam is asking you to send a certain amount of money for a higher prize from other people participating in the circle. Called the money circle, money wheel, or pyramid scheme, these scams are designed so that you never get any money back.
To protect yourself from being outsmarted by 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 the deal looks. Also, learn how to identify fraud with counterfeit donations.
5. Selling expensive items through the Cash app
Whether you’re trying to get hold of a purebred puppy, a lease on a new apartment, or a concert ticket to a sold out show, you should never agree to pay for it through the Cash app. Scammers know that the Cash app does not offer buyer protection, so they are more likely to encourage their victims to pay for counterfeit items through the app. Once the unsuspecting users pay the fees, the scammers disappear without handing over the items.
Cash App recommends not to send payment to someone you do not know and without verifying the legitimacy of the item. If you think that you have been scammed in the Cash app, you can dispute the charge through the app by selecting the transaction and tapping on “…” -> Need help and support for the Cash app -> This transaction contest. The Cash App team will investigate your claim, but there are no guarantees you will get your money back, says Gordon. Your money will be more secure if you limit your transactions to your close friends and family, or if you have a few dollars in your wallet when it is better to pay in cash.
What to do if you think you have been betrayed
If you believe you are a victim of a Cash App fraud, you should immediately report the incident to Cash Support and cut off contact with the scammer, according to the Cash App website. Velasquez suggests notifying 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 or more characters, using a different password for each account, and storing all passwords in one password- Manager. Invest in one of the most secure phones to avoid security problems in the future.
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