Cash App, created by Square Inc., is a widely-used app known for its easy money transfers and payment features. However, like any online platform, it’s possible to encounter scams and fraud. Even though Cash App tries hard to keep things secure, users can still get caught in scams due to tricky techniques cybercriminals use.
This article discusses a few common types of Cash App scams, what to do if you get scammed and how to avoid Cash App scams.
Also read: Is it safe to give out your Cash App tag?
Common Cash App scams
Many types of scams are happening on online paymeBelow we have explained a few common types of scams on Cash App.
Cash Flipping
Cash App frequently holds giveaway contests on its official Twitter account. However, scammers often target users who are trying to win these contests. They do this by lurking in the comment sections of real giveaways and promising users that they can transform a small amount of money, like $5 or $10, into a larger sum. Sadly, once you send them a small amount, these scammers vanish, taking your money.
Accidental Deposits
If you ever receive unexpected money in your Cash App account, there’s a high possibility that someone is attempting to trick you. In this scam, fraudsters send you money, claim they made a mistake, and ask you to return it. They want you to pay them from your account, and then they dispute the original payment with their bank. This way, they end up getting reimbursed twice.
Cash App advises users to refund such random payments instead of creating new payments to give the money back. The company also warns against accepting money from unknown people and sending money to usernames you’re not familiar with.
Payment Claims
This scam is similar to cash flipping. The scammer deceives you into believing you’ve won a prize or can make money with a small investment. They ask you to claim a payment that supposedly belongs to you by sending them money first. However, Cash App explicitly states that it never requires users to claim legitimate payments via the app.
Fraudulent Cash Support
Scammers took advantage of the situation during the pandemic when Cash App had to cut down its employees. They started sharing fake phone support numbers. If anyone called these numbers, the scammers would try to get essential details like login information, Cash Card details, or other valuable information. They used this information to steal money from Cash App accounts or even commit identity theft.
Cash Support will never request your Sign-In Code or PIN, ask you to send money, buy something, install an app for remote access, or do any test transactions.
Also read: How to stop Cash App from cancelling payments?
Will Cash App refund money if you get scammed?
Unfortunately, receiving a refund for a fraudulent Cash App transaction isn’t always guaranteed. The Cash App team will carefully investigate each disputed transaction, determining which ones qualify for a refund and which do not. Nevertheless, if your refund request is declined, there are still potential options to recover your funds.
What to do if you get scammed on Cash App?
If you’ve fallen victim to a scam on Cash App or accidentally sent money to the wrong recipient, here are the steps to recover your funds.
Try to cancel the payment
Cash App transactions usually occur instantly, making cancellation usually impossible once initiated. However, if you are lucky enough and the transaction is still pending, you can cancel it. If you suspect a pending transaction is fraudulent and wish to cancel it, follow the steps below.
- Open your Cash App.
- Navigate to the Activity tab.
- Tap on the transaction you suspect is fraudulent.
- Check for a Cancel option and tap on it immediately. If there is no option to Cancel, the transaction has already been processed.
Request a refund from the recipient
Another step is to request a refund, though it is a good option if you have sent money to the wrong person, but if you got scammed, then scammers would simply ignore the request. To request a refund, follow the steps below.
- Open your Cash App.
- Navigate to the Activity tab.
- Tap on the fraudulent transaction.
- Select Completed and then tap on the Report an issue.
- Choose a reason for a refund request and tap on Next.
After the completion of the procedure, Cash App will forward the refund request to the recipient. Unfortunately, it’s unlikely that fraudsters will willingly return your stolen money. In such cases, you might need to elevate the matter by initiating a dispute for the transaction.
Dispute the transaction
You have grounds to dispute a Cash App transaction in these situations:
- The result differed from what you anticipated, like in cases of double charges or incorrect amounts.
- Fraudulent transactions take place due to a lost or stolen Cash App card. You can also dispute such transactions if your account is hacked or you were not involved.
To dispute a transaction, follow the steps below.
- Open your Cash App.
- Navigate to the Activity tab.
- Select the fraudulent transaction and tap on the Triple horizontal dots icon.
- Tap on the Need Help & Cash App Support option.
- Now, tap on Dispute this Transaction.
Report the transaction as a scam
After trying all the above methods, you can report the transaction as a scam on the Cash App. To report a transaction as a scam, follow the steps below.
- Open your Cash App and tap on the Profile icon.
- Tap on Support.
- Tap on the Report a Payment Issue option.
- Select the fraudulent transaction and follow the prompts.
Also read: How to stop spam emails?
Report and block the scammer
Occasionally, a Cash App scam might be linked to a suspicious account rather than a particular payment. To report and block the scam account, follow the steps below.
- Open the Cash App and search for the profile of the scammer.
- Now, view the profile and scroll to the bottom.
- Click on Report or Block and then follow the prompts.
Inform Your Bank About the Fraudulent Activity
If you fall victim to fraud and potential compromise of your bank account or debit card, it’s advisable to contact your bank. A bank representative can guide you on the necessary steps to safeguard your account from further fraudulent actions. They can also help you understand if you’re eligible to raise a dispute with the bank regarding the fraudulent transaction.
Freeze your credit
Not all instances of Cash App fraud are confined to mere transactions. If a scammer has managed to access your Cash App account, there’s a possibility they might have gained access to your financial details. Contacting major credit bureaus and freezing your credit is a nice idea. This proactive step will prevent scammers from opening unauthorised accounts using your credit information.
Report the Fraud to FTC or IC3
The Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3) serve as effective channels for reporting fraud to government authorities. Both agencies will require information to identify the victim, provide details about the scammer, and outline specifics of the fraudulent transaction.
How to avoid Cash App scams?
- Be Cautious of Unrealistic Offers: If something sounds too good to be true, it probably is. Don’t be easily swayed by promises of quick money, prizes, or extremely surprising investments. It’s safer to be sceptical of such offers and avoid them.
- Check the Sender’s email address: Look closely at the sender’s. Cash App’s official emails come from addresses ending in @square.com, @squareup.com, and @cash.app. Phishing scammers might mimic the email format but can’t replicate the real email addresses.
- Be Selective with Transactions: Use the Cash App to send money only to people you know and trust. When dealing with marketplace sellers, consider meeting in person to check the item before making a transaction. Remember that Cash App doesn’t offer buyer protection, so limit your purchases through the app.
- Verify Transactions: Double-check the recipient’s details if you’re dealing with unfamiliar people on the Cash App. Be cautious if the name they provide doesn’t match their Cash App account. Inconsistent information could be a sign of suspicious activity.
- Avoid Reusing Passwords: Never use the same password for different accounts, like Cash App and your email. If scammers get access to one account, they might retrieve your one-time PIN and gain entry to your Cash App account, even with two-factor authentication.
- Enable Payment Verification and Notifications: Modify the Cash App’s Security Lock to require your passcode before each transaction. Also, turn on notifications for every transaction to promptly identify any unauthorised activities on your account.
Also read: Is Cash App safe to receive money from strangers?
