How to Avoid Cash App Fraud

While most people think that using a popular app protects them from being a victim of fraud, sometimes the opposite is true. There are times where the popularity of an app puts a target on its user’s backs.
Take Cash App, for example. There are 24 million monthly active users of the popular peer-to-peer payment platform, making it one of the most popular ways to send money online. This means that there are 24 million potential targets for criminals. Since the pandemic caused financial hardship for billions of people around the world, it’s only natural that Cash App fraud is on the rise.
Scammers are inherently lazy and look for soft (easy) targets. When you have that many potential victims, finding targets becomes much easier. It’s like shooting fish in a very crowded barrel.
How can you protect yourself from becoming a victim? Read on to find out more about Cash App fraud protection techniques!
There’s No Such Thing as a Free Lunch
One of the oldest scams in existence is the idea that you can get something for nothing. All you have to do is send someone a small fee to win a prize or have your money doubled, and you could soon solve all of your financial problems!
Of course, once you send the money through Cash App, the person quickly disappears and stops answering your messages. You’re left with nothing but a feeling of embarrassment and less money in your account.
There have been several scams like this over the past year, mostly centered on cryptocurrency and P2P payment platforms. They all have some version of the same sales pitch: send us money and we’ll send you back more. On Cash App, this happens most often when users post their ID to Twitter with #CashAppFriday, which is a rewards program the company runs. On Fridays, users will take to Twitter and post their IDs, and Cash App will pick some of them and put money into their account.
Unfortunately, once you post your ID online, anyone can see it. Scammers message these people and tell them they’ve won, but they have to send a small fee and give up some personal information to verify their identity. For someone who’s having financial problems, the promise of a $500 reward is too tempting to pass up. They send the processing fee but never receive the reward.
You Can’t Get Rich Quick
The lesson here is simple: there’s no such thing as a free lunch. Get rich quick schemes are exactly as advertised: a scheme. If something sounds too good to be true, it probably is. Cash App will never ask for your personal information or for any fees to give you a bigger reward, as your information is already in their system.
Only send money to people you know and report anyone who promises you a bigger reward for a small payment.
You should also never click any links sent to you from unknown sources. These links may contain malicious software that allows scammers to spy on your activity. If someone promises you something for free, assume it’s a scam and act accordingly.
Protect Your Login Information 
Another way that scammers can get their hands on your money is through emails or messages on social media. You’ll receive a message from someone posing as a Cash App representative. They’ll tell you there’s a problem with your account. They’ll have to lock it down unless you provide them with personal information, including your login information and PIN codes.
Some brazen criminals may even try to get you to provide them with banking information under the guise of a “final verification!”
If you receive a message like this, think back to when you signed up for Cash App. Didn’t you already give them this information? Do you think they threw it away? Of course not…they have to keep this information on file under federal law. Cash App will never ask you for this information, and they make that clear on their website.
If anyone ever asks you for this information, fill out a Cash App fraud report immediately. This will serve two purposes: first, you’ll protect yourself from a scam. You’ll also protect other users from similar messages. Cash App will investigate, and if they have others who have fallen for this scheme, it will make it easier for those people to get their money back.
Being Proactive is the Best Way to Protect Yourself 
You may think that Cash App will refund your money if someone has scammed you, but this isn’t the case. Unfortunately, it’s hard to police 24 million monthly users. There are also people who will file false reports with the Cash App fraud department hoping to trick them and get free money. It takes a special kind of moxie to try to defraud the fraud department!
Cash App also has a negative reputation when it comes to resolving these types of issues. Because of the number of users and the process they use to resolve disputes, there’s a chance that Cash App won’t refund your money even after you report Cash App fraud.
https://financialjusticenow.com/blog/thorne-v-square-inc-and-sutton-bank-allegations-of-cash-app-fraud/ outlines a legal case against Cash App for this very problem. The lawsuit makes the case that Cash App doesn’t do enough to protect its users. Another claim is that they deny users justice because they require that they provide more proof of fraud than what’s required by law.
We’d recommend looking over this article, as it also points out how fake vendors have scammed one defendant out of thousands of dollars.
The lesson here is to always think critically before sending anyone money. Are you sending it to someone you know or to a business that you can easily trace online? If not, there’s a good chance that you’re being targeted for fraud.
Protect Yourself From Cash App Fraud
It might seem impossible to prevent yourself from Cash App fraud with all the cases you read about, but by following the advice abover you can keep your account (and money!) secure. Remember what we said earlier: scammers are lazy. The minute they realize you aren’t an easy target, they’ll move on to the next person.
Protect your account information, only send money to people you trust, and don’t click on any links sent from unknown sources. Remember that get-rich-quick schemes are always dubious. Keep these things in your mind and you won’t have to worry about filling out a Cash App fraud dispute.
Now that you know how to protect your money, you may want to know how you can grow your wealth. We’re here to help! We have a variety of articles and tools that can help you, from loan calculators to profiles of successful business people. Check out the rest of our website for financial management information and advice you can trust.