7 Most Common Cash App Scams and How to Avoid Them
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By Dan Rafter
There’s a reason mobile payment apps are so popular: They make it easy to send and receive payments digitally. Want to reimburse a friend who paid for your coffee last night? You don’t have to withdraw $20 from an ATM and make change. You can instead send money to that friend’s bank account with a mobile app.
Want to buy an antique lamp that you saw online? Don’t worry about sending a check. You can send cash to the seller directly from a mobile payment app connected to your bank account.
It’s little wonder that mobile payment apps – often peer-to-peer or P2P apps – are steadily gaining new users. Apps such as PayPal, Apple Pay, and Google Pay make paying for items or sending money to friends or family members as easy as pressing a button on your phone.
You can add Cash App to the list of peer-to-peer payment apps booming in popularity. A research report from SignHouse says that Cash App is the third most popular mobile payment option in the United States, trailing only PayPal and Apple Pay.
But as these apps become more popular with consumers, they are also attracting the attention of scammers. Cash App is a convenient way to pay for everything from restaurant meals and groceries to electronics and Uber rides. But if you don’t take the proper precautions, it can also be a tool for scammers to empty your bank account, steal your identity or trick you into paying for goods and services you’ll never receive.
Here’s a look at some of the most common Cash App scams you might encounter, along with tips on how to avoid them.
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What is Cash App?
Like all P2P apps, Cash App lets you receive and send money from your mobile device. You can also use Cash App to purchase stocks or Bitcoin.
To use Cash App, you first sign up for an account online or download the app. You'll then be required to link your Cash App to an existing bank account. Once you do this, you can send money to friends, family members, or vendors. You can receive money from customers, friends, and family members. The money will be deposited into your linked bank account.
You can also order a Cash Card, or a debit card tied to your linked bank account. You can use this card to make purchases online or in person.
SignHouse reports that in 2022, Cash App had 51 million users. That's up from 44 million in 2021 and 36 million in 2020.
With so many users, it’s unsurprising that criminals have targeted Cash App for scams. Fortunately, Cash App does come with safety features.
Cash App will send a one-time-use code when you log into your account.
You can create a security lock so that no Cash App payments will close without you entering a passcode.
If your Cash Card is lost or stolen, you can remotely disable it through the Cash App or logging into your account.
All Cash App data is encrypted, so that cyber snoops can't spy on your purchases and payments.
But even with these security measures, you can still fall victim to scammers eager to siphon money from your account.
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7 most common Cash App scams
Scam 1: The random deposit
You check your Cash App to discover a random deposit of $50, $100, or more in your account. That’s good news, right? Maybe not. Sometimes it’s the sign of a scammer.
Here’s what might happen: The scammers who make these deposits send you an email message or text asking you to refund the deposit. At the same time, they dispute the deposit with their bank or credit card provider.
If all works out well for the scammers, you’ll pay them back what they deposited, and their bank or card provider will refund them, too. If they deposited $100 with you and both you and their bank refunded them $100 each, they’ll end their scam with a net gain of $100.
And you’ll be out $100 after the scammers’ bank or credit card provider cancels their initial deposit into your account.
How to avoid this scam: You can avoid this scam by employing a bit of common sense. A random deposit into your Cash App account is too good to be true. And if a request for a refund follows that deposit? You know someone is trying to scam you.
Instead of answering any email or text, contact Cash App support by starting a chat in your mobile app or by calling Cash App at 800-969-1940. You can reach Cash App from 9 a.m. until 7 p.m. Eastern, Mondays through Fridays.
Don’t expect any surprise deposit from a source you don’t know to be legitimate. And don’t let your eagerness to nab some extra dollars override your common sense: Always contact Cash App support when a strange deposit appears in your account.
Scam 2: Offering luxury items for a low price
It’s a bargain: Someone is offering you concert tickets to the hottest act in town for a low price. Or maybe someone is willing to sell you a flat-screen TV for under $100 or send you a high-priced designer purse for half of what you’d pay in the store. All the seller needs is a payment from your Cash App.
Maybe you stumbled upon an online advertisement for someone offering the latest iPhone or smartwatch for a bargain-basement price. The ad promises a true bargain.
But after you send the money? The seller disappears, and you receive nothing. Or maybe you receive a cheap replacement for or knock-off of the laptop, purse, jacket, or speaker that you thought you were buying.
How to avoid this scam: If someone offers you an incredible bargain? Unless you know the person, pass. It’s almost certainly a scam. And never send money to someone you don’t know if that person is charging an unrealistically low price for concert tickets, sporting events, clothing, electronics, or other goods or services.
Scam 3: The prize trick
You find a message in your inbox or a text on your phone stating that you won your state’s lottery. Or maybe these messages say that you’ve won a flat-screen TV, a free laptop, or a cruise to the Bahamas.
To claim your prize? You need only send a small down payment with your Cash App.
What happens next isn’t surprising: The person offering you a prize, lottery winnings, or free vacation disappears after you send the money. You never receive any prize or reward.
How to avoid this scam: Again, avoiding this scam comes down to common sense. You can't be a winner if you didn’t enter a lottery or sweepstakes. If someone sends a message or text claiming that you won a lottery or giveaway that you don’t even remember signing up for? Delete that message or text. And never send money.
In legitimate sweepstakes, you’ll never have to send funds to redeem a prize or winnings.
Scam 4: The Social Security number request
Your Social Security number is a key way to identify you. It’s why scammers are so interested in nabbing yours. Criminals who get your Social Security number can use it to steal your identity. They can then drain your bank account, take out loans in your name or open a credit card account using your information.
Be careful if someone claiming to be from Cash App support contacts you, whether by text, email or phone call, and asks for your Social Security number. Scammers might say that they need this number to verify your account. If you don’t provide it, they say, they’ll have to close your Cash App account.
Don’t believe it. Cash App says that its representatives will never ask for your Social Security number or full bank account information. If someone does ask for it? You can be sure that person is a scammer hoping to steal your personal financial information.
How to avoid this scam: Never provide your Social Security number to someone who calls, texts, or emails you asking for it. Instead, hang up or delete the messages. You never want a scammer to get your Social Security number.
Scam 5: Cash-flipping
In this scam, criminals send you an email or text message claiming that they can flip, or increase, your money. But first, you’ll need to make an initial deposit.
Scammers might ask you to send them a small payment, maybe $50 through Cash App. They might say they need this money to buy an emergency train ticket or pay off a surprise fine or bill. They then promise to reward you for your generosity by flipping your initial payment into something bigger, sending you $100 or $200 in return for your initial deposit, sending this payment through your Cash App.
Of course, that flipping never happens. Once you send your initial deposit through Cash App, the scammers take your money and disappear.
How to avoid this scam: Never send money to anyone you don’t know. And never believe people when they claim they will send you money, but only after you send them cash first. That is a sign of a scam.
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Scam 6: Fake puppies
Looking for a furry friend? You might be vulnerable to the fake puppy scam.
In this scam, people pretend to have dogs, puppies, or other pets for sale. They’ll even post photos of the furry critters online. When you contact them, they’ll request a deposit to secure your pet, which you can make through your Cash App.
You know what happens next: After sending your deposit, the pet owners disappear with your funds. And you come no closer to bringing home a new pet. And those photos? The scammers probably pulled them from the websites of pet-rescue agencies.
How to avoid this scam: Pet scammers follow easily recognizable patterns. They won’t talk to you over the phone or agree to introduce you to the pets they are selling until you send a deposit. You can avoid this scam by recognizing these two traits and never sending money through your CashApp before meeting the pet owners and the pet you want to adopt -- in person.
Scam 7: Pretending to be Cash App support
You might receive a text or email from someone claiming to work in Cash App support. This message might state that Cash App has discovered a suspicious transaction connected to your account. To make sure you aren’t fraudulently charged, the message might say, you’ll need to provide Cash App support with your account’s log-in information.
The message might also state that Cash App support will shut down your account if you don’t provide your log-in information.
If you provide this information? The scammers will use the message to access your Cash App account to make fraudulent purchases and withdrawals.
How to avoid this scam: Cash App support staff will never contact you and ask for your account number or login information. Never provide this information to anyone who asks for it. If you are worried about possible fraudulent purchases, contact Cash App support and delete the messages or texts you’ve received.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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