Top 6 Cash App Scams and How to Avoid Them in 2024

Cash App is one of the fastest-growing peer-to-peer mobile payment platforms on the market. As it’s become increasingly popular, it’s become the focus on several major scams. Mobile-intelligence provider Apptopia has reported that incidents of fraudulent activity are up by more than 300% in 2021 compared to 2020. Users have told Yahoo Finance about how they’ve lost thousands of dollars after their Cash App accounts have been hacked.

The pandemic turbo-charged the growth of Cash App, making it no surprise that scams involving the platform are growing every week. Cash App faces the same scams and issues as other peer-to-peer payment apps, including Venmo and Zelle.

We’re sharing some of the top Cash Apps scams and how to avoid them to keep your personal data and money

Is Cash App Safe to Use?

Cash App is safe to use. It’s no less safe than any other peer-to-peer payment app and the platform offers several security measures to keep your money and personal data protected.

Cash App has an AI-driven function to flag potential scams and sends text messages to alert users of unusual login activity. They’ll also prompt you to confirm a money transfer if the user is not on your contact list. Cash App uses two-factor verification and facial recognition, similar to other financial platforms, including most mainstream banks.

The danger of Cash App arises from how the user utilizes the platform. Scams are usually the consequence of how the user is being taken advantage of on social media. While your Cash App might feel like free money, it’s just like cash. Once it’s gone, you’re not getting it back.

If you’re wondering if the Cash App free money code is legit, we’re glad to tell you that it is.

The best way to protect yourself from Cash App scams is to be vigilant and aware of the most common Cash App scams, as well as how to avoid them.

Common Scams for Cash App and How to Avoid Them

1. Customer support impersonation

One of the biggest scams Cash App scams is also one of the most common for any financial platform – impersonating customer support. Cash App does not offer live customer support, which is a major pain point for some users. Instead, Cash App points is users to the app to report frauds and scams.

The scam that Cash App users most often fall for is when scammers impersonate a member of the Cash App customer service team by sending them a message through social media or text. This scam also occurs via phone calls.

This scam is facilitated by fake websites that are created to trick users into thinking that there is a live Cash App support phone number to call. As they appear in Google searches, users fall for the scam.

When you call any customer support representative – including Cash App – you should be wary of anyone who asks for your sign-in code or the PIN for your Cash App. You’ll never be asked for this personal information or your bank account information. Cash App will also never request you to send a payment, download an application for remote access, or complete a test transaction. These are all common signs that you’re being scammed by a customer support impersonator.

2. Cash flipping

Peer-to-peer payment platforms like Cash App are particularly vulnerable to cash flipping scams. When you approach anything online, you should always follow the guidance of – ‘if it’s too good to be true, it probably is’. This scam is usually carried out on social media by users who promise to increase your money by ‘flipping’ it once you send it to them via Cash App.

The scammer will claim to send you back double or triple the original amount that you sent them. As you can guess, the scammed user never receives any money back, including their original payment.

These scams are often cleverly named as a ‘money circle’ where the scammer will tell you that you’ll receive a higher amount back from other people participating in the circle. The best way to avoid this scam is to never send money via Cash App to people that you don’t know in real life or who you don’t have a genuine reason to transfer funds to.

3. #CashAppFriday Scams

This scam is partly the product of Cash App’s own making. Every Friday, Cash App hosts an official sweepstakes on their social media platforms that allow users to win cash prizes. As you’d expect, scammers are all over this event and host dozens of fake #CashAppFriday events every week to scam users.

This scam operates through fraudulent raffles, where the scammer will contact the user to ask for a few dollars via Cash App to enter the raffle or ask for their login credentials for a chance to win the #CashAppFriday sweepstakes. Users never receive any money if they do follow through.

If you decide to take part in the regular #CashAppFriday official sweepstakes that are hosted by Cash App, you want to ensure that you’re only interacting with the official accounts that are blue checkmark verified on Twitter.

4. COVID-19 Related Scams

Like most payment platforms, Cash App has been the subject of numerous scams revolving around COVID-19 relief programs. Scammers create fake relief or grant programs and ask users to make a payment as an advanced fee in exchange for receiving benefits from the program. Other common COVID-19 related scams that have been reported include claims of prizes for users who have been vaccinated. Another scam includes fraudsters posing as government employees to get your personal information.

While there are legitimate relief programs out there, alarm bells should ring if you’re asked for any form of identification or financial information. You should also not be requested to pay an upfront fee. It’s another case of ‘if it’s too good to be true, it probably is’. If you’re approached about any form of program, it’s always best to contact the organization directly to speak to a representative.

5. Selling high-value items through Cash App

Just like PayPal, Cash App is often the focus of apps involving the sale of high-value items. Whether it’s concert tickets or a designer handbag, fraudsters often use Cash App to scam unsuspecting users as the platform doesn’t offer buyer protection, meaning that the victim is unlikely to be able to recover the lost money. Most of the time, the fraudster will disappear once the user has paid the fee and often won’t have the desired item in the first place.

While you can dispute a transaction through Cash App, there’s no guarantee that you’ll be able to recover your lost money. Cash App recommends that you don’t send a payment to someone you don’t know or for an item that you can’t verify the authenticity and legitimacy of. If you need to buy a high-value item, do it through sites like eBay that provide you with buyer protection in the event that something goes wrong.

6. Text, Call, and Email Phishing Messages

Cash App is also the focus point of text phishing scams that are common with any financial platform, including traditional bank accounts. These phishing messages are typically sent my email or text message and target random users, asking them to click on a link and enter their details. Alternatively, this same phishing happens through phone calls where the fraudster will ask you to provide sensitive information.

A typical message will usually read “your $800 Cash App transfer is pending confirmation” with a link that will re-direct you to the scammer’s website and not the Cash App. The purpose of this scam is to get your Cash App login to access your personal information, including your bank details.

You will only ever be contacted by Cash App through the app or official channels. It’s easy to verify the identity of a genuine Cash App message and you’ll never be sent a link to a third-party website that isn’t the Cash App platform. If you receive a message from a scammer like this, the best course of action is to block the number and delete the message.

What to do if you’ve been scammed on Cash App

Unfortunately, there’s not much that you can do if you’ve been scammed on Cash App. You can contact the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3) if you’ve been the victim of a scam involving Cash App. You can also dispute the transaction through your Cash App account, but there’s no guarantee that the money can be retrieved.

The most proactive step you can take is to change the password for your Cash App account and any other accounts that are linked to your Cash App or that used the same password. You can utilize a password manager to keep track of the individual passwords for your different accounts.

While Cash App is typically safe to use, it’s vulnerable to the same scams that fraudsters conduct that target traditional bank accounts. The best way to protect yourself is to only send or receive money from people in your close circle and to only interact with Cash App through their official platforms.