Cash App is a mobile payment app that lets people quickly send, receive, and invest money. It was created by Block, Inc., previously known as Square, Inc., in 2013 as a response to other payment apps like Venmo and PayPal.
It’s important to note that Cash App is just a financial platform and not a bank itself, but it offers some banking services and provides debit cards in collaboration with banks. The money you have in your Cash App account is protected by the Federal Deposit Insurance Corporation (FDIC) through partner banks, which means your balance is safe.
Additionally, Cash App also offers investment services through Cash App Investing LLC. This part of the app is authorised by the Securities and Exchange Commission (SEC) as a broker-dealer, and it is a member of the Financial Industry Regulation Authority (FINRA). You can use Cash App to invest in stocks and other financial products.
With the increasing scams and fraudulent activities through payment apps, the question is whether Cash App is safe to use.
In this article, we have discussed whether Cash App is safe, the most common frauds on Cash App and how you can protect yourself from scams.
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Few common scams on Cash App
Many types of scams are happening on online payment apps like Cash App, PayPal and Venmo, and we have explained below a few common scams specific to Cash App.
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.
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.
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 important 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.
Is Cash App Safe?
Yes, Cash App is safe to use; it uses encryption and smart tools to protect the money and personal information of the user. Encryption keeps your data safe while it’s being sent to their servers, and a smart system helps spot any strange or doubtful transactions.
How to protect yourself from 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 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 Cash App’s Security Lock to require your passcode before each transaction. Also, turn on notifications for every transaction to identify any unauthorised activities on your account promptly.
Even though the app has safety measures, users must stay on guard and follow best practices to keep their money safe. As technology changes, being aware and careful is still the most important way to have a secure digital money experience.
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