By Markus David
Director of Professional Services
Cash App is yet another convenient way to send and receive money online, but it can also be a magnet for fraud. According to the Federal Trade Commission (FTC), Cash App scams have increased 472% since 2020 and are expected to continue to rise.
Fraudsters are becoming more sophisticated about how to rob money from Cash App users with new schemes constantly evolving.
Cash App Is Not a Fraud – But It Can Attract Fraudsters
We should be clear right from the start that Cash App is legitimate and is not a fraud. However, like social media, the payment platform may easily attract dishonest schemers. One reason is that wherever there is money, there are bound to be people waiting to steal it.
A second possible cause is the lack of dispute resolution available on Cash App, in contrast, for example, with PayPal. This can be an advantage to merchants and a drawback for customers. Also, it can benefit those who want to take money and get away with it.
Six Common Cash App Scams
One key to staying safe from Cash App scams is knowing the tricky methods used by suspicious parties on the payment platform. The following are common types of Cash App schemes to guard agains:
Cash App Phishing
Most of us know about phishing – it’s an underhanded method of getting data from strangers. People may do this by making friends with others online, earning their trust and then asking for personal information or photographs. In some cases, unscrupulous people create phony job postings or will advertise a deal that requires you to submit information.
One common type of scam that is easy to fall for if you aren’t expecting occurs when a fraudster pretends to be representing Cash App customer service and asks you to verify your information. You may receive an email or a text message that looks like the company’s actual communication. However, once you give your data, they can wipe out your account.
Cash App Flip Scams
Cash App Flip scams involve a special “deal” that will enable you to double your money or “flip” your funds so they will make huge returns. They’ll tell you the plan is simple – and it is. All you have to do is give them some money. However, the deal is even simpler than the one they advertise – they’ll just keep it, won’t trade it, and won’t give it back.
Cash App Bitcoin Scams
Cash App bitcoin scams, like other cryptocurrency frauds, involve finding sneaky ways to access bitcoin keys and codes and stealing money out of their crypto wallets. The best way to keep your money safe on the blockchain is to not give away your crypto keys or codes to anyone and to keep all of your information secure.
Romance and “Sugar Daddy” Cash App Scams
Romance and money should be kept separate. However, since both money and love can make the world go round, the two major forces can coincide on social media and also on Cash App.
Most of us have heard of famous catfishing scams, when someone seems to look for love on social media, when in fact, it’s just an imposter trying to get into purses. Sugar Daddy Cash App scams work similarly. Young people who are looking for romance and financial “help” may get a nasty surprise when, after asking for their information presumably to make a deposit, the “sugar daddy” makes off with the candy.
Accidentally Sending Money
If someone you don’t know sends you money via Cash App, it may seem like an honest mistake. However, there might be more to it than that. They may, reasonably, ask you to send the money back to them, when in fact, they are just making more money from stolen money. This is an underhanded way to launder money and of getting you stuck with their ill-gotten gains.
Merchant or Broker Frauds
Since CashApp doesn’t allow chargebacks and has a limited dispute process, merchants may prefer this platform because it reduces the risks of “friendly fraud” — when customers with bad intentions get their money back after using an item or without returning it at all.
However, this is good news for merchants and brokers who want to make it less likely their victims will get a refund. Be careful about any trading deals on Cash App. Instead, research brokers carefully before opening an account and avoid taking advantage of fly-by-night deals on Cash App.
If You’ve Lost Money or Data to a Cash App Fraud, Don’t Give Up! Contact MyChargeBack
However, it’s important not to give up if you are a victim of online fraud, but to seek recourse immediately. MyChargeBack has developed working relationships with law enforcement agencies worldwide, has extensive knowledge and experience with crypto tracking, and can improve your prospects of getting your funds back.