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The Dangers of Cash App Scams and Ways To Avoid Them


The Dangers of Cash App Scams and Ways To Avoid Them


Although peer-to-peer (P2P) payment apps like Cash App were designed to make money transfers easier, fraudsters have found ways to use these apps to their advantage and to the users’ detriment.

In 2023, Cash App accounted for 24% of the apps used for scam payments in the U.S., coming in second place among top U.S. scam-prone payment platforms. According to Jamie Harding with AARP Alabama, Cash App scams occur daily, emphasizing the importance of staying alert, informed, and protected.

In this guide, we’ll cover all you need to know about Cash App scams, how to avoid them, and what to do if you ever get scammed on the app.

Can Someone Scam You Through Cash App?

Yes, you can get scammed through Cash App, even though the app is safe for P2P transactions.

Originally, Cash App was created to facilitate easy transactions between users, allowing them to send money to each other in real time. The goal was to provide a convenient payment method for users to send and receive money quickly and without high bank fees. The app is mainly used to pay for items, invest in stocks, buy cryptocurrency, and more.

Unfortunately, the advancement of sophisticated technology and the speed with which Cash App works make it easy for scammers to access the money and hightail before the victim can react.

How Do Cash App Scams Work?

Cash App scams are mainly digital. Scammers leverage the cover of the internet and pretend to be someone the victim knows to trick them into sending money or sharing their financial information.

It’s usually hard to tell if a transaction is fraudulent because scammers constantly develop new ways to defraud their victims. They pose as friends, popular businesses, and even Cash App representatives to convincingly dupe users.

Cash App provides security features to protect transactions from fraud, including:

  • Encryption
  • Passcodes and PINs
  • Biometric security
  • Cash App notifications
  • Limited fraud protection

However, it’s common to hear about cases where victims get hacked remotely and the scammers empty their accounts. This usually happens through remote malware installation or imposter scams. 

For example, in the case of Jacqueline Sanders, a Cash App scammer pretending to be a customer support representative directed her to install an app called “AnyDesk.” Once installed, he gained access to her family’s bank accounts and transferred all their savings to his cryptocurrency wallet.

It’s important to educate yourself about the major Cash App scams because once you send money out via this platform, it’s difficult to recover it.

Trending Cash App Scams To Look Out For

Cash App fraud isn’t always obvious, so here are some trending scams to watch out for while using the app:

Type of ScamApproachExplanation
ImpersonationGovernment assistanceScammers pretend to be government representatives, offering you government-funded relief, a tax refund, or stipends. They then ask you to send your Social Security number or Cash App information to receive the money
Customer supportCriminals pose as the company’s customer support agents and offer to walk you through the process of recovering your account or getting a refund after a previous scam. They’ll typically send you a malicious link to provide more information about your account
AcquaintancesScammers pretend to be your relative, colleague, friend, business partner, etc. and try to lure you into sending them money or personal information under the guise of being stranded
Fake depositsPet buyingThey advertise pets for sale on Craigslist and ask you to make a downpayment for a puppy or another type of pet so they don’t sell off the entire litter to other customers
Online marketplacesScammers on marketplaces like Facebook Marketplace or Craigslist advertise fake or non-existent products or apartments and request deposits
Appealing offersCash flippingFraudsters pose as financial experts with fake credentials and offer to quickly turn a small amount of your money into a larger sum. Once they receive your money via Cash App, they block you
JobsThey put up fake remote job ads with lucrative compensation and ask interested applicants to pay a small price for training materials, software, or background checks

How To Avoid Getting Scammed on Cash App—Helpful Tips

To avoid falling prey to Cash App scams, here are seven strategies you can try:

  1. Only send payments to verified persons or organizations
  2. Never share your personal information online
  3. Secure your app with unique passphrases
  4. Don’t click on links unless verified
  5. Turn on your app notifications
  6. Activate two-factor authentication
  7. Don’t be too trusting

Only Send Payments to Verified Persons or Organizations

Cash App isn’t a substitute for bank transactions but a complementary payment tool for convenience. It’s best suited for smaller, less significant transactions—not large payments. If you must use Cash App for major payments, make sure to:

  • Verify the recipient’s identity first—Even if they claim to be your acquaintance, use a different communication channel to verify that they indeed made a request. Never use the phone number, link, or contact details that the recipient provides to verify their identity
  • Keep an eye out for inconsistencies—If an organization contacts you about a Cash App payment or account error, double-check the spelling of their name and email. Look keenly for typos and alternate spellings like “Cash Appp,” or email addresses ending in @gmail.com instead of @cash.app, @squareup.com, or @square.com 

Scammers deliberately use official-looking contact information similar to the original, making it difficult to spot the scam quickly. Scrutinizing Cash App-related communications more closely will help you stay safe.

Never Share Your Personal Information Online

Scammers can easily compile enough information to send you a convincing email based on what you share online. They stalk potential victims on the internet, gathering data about their friends, colleagues, workplaces, family members, and so much more. 

With this information, they can create a message to phish the victim and get them to share private details about their Cash App account.

This is why it’s important to keep your personal life as private as possible if you’re active on social platforms. If someone contacts you claiming to be an acquaintance and asks for sensitive information like your account details or PIN, block them immediately.

Secure Your App With Unique Passwords

A simple password with one word and a few digits may have been sufficient to protect your account in the past—but in 2024, a hacker can crack it in only 37 seconds using advanced techniques.

Security experts recommend using a 16-character password containing multiple words, numbers, special characters, and a mix of upper and lowercase letters. 

Don’t use the same pasword for all your sensitive accounts because if a scammer gets a hold of it, they’ll have access to all your financial accounts. If remembering all your passwords is too tasking, a simple solution is to use a reliable password manager like Google Password Manager.

Don’t Click on Unverified Links

If you don’t know who a link is from, don’t click on it. If the URL contains familiar information related to a popular platform, verify the sender before you click on it. This is because scammers create links that are similar to what a real organization will send.

For instance, a scammer can send a link like “cashappp.com/reset-account.” An unsuspecting person may not raise eyebrows because the link contains the term “cashapp,” which is affiliated with an organization they know. But on closer inspection, you’ll see three Ps in the URL.

If you click on a malicious link like this, it can install malware on your device, giving scammers access to information they can use against you.

Turn On Your App Notifications

The sooner you know what’s going on in your account, the sooner you’ll be able to stop it. While app notifications can be annoying, they’re useful for tracking your Cash App activities.

Turn on your app notifications to receive alerts about unauthorized transactions, changes in your account settings, altered contact information, and other harmful activities that scammers do in their victims’ accounts.

Contact the Cash App support team once you suspect someone has breached your account. If you’re quick enough, you can cancel the payment via the app before it’s finalized.

Activate Two-Factor Authentication

Multi-factor authentication, or two-factor authentication (2FA), is an extra layer of security that Cash App provides to keep your account safe. Go to your Cash App settings to activate this feature if it’s not already enabled.

Cash App will send you an additional password or code to confirm that you authorize every login attempt. 

Don’t Be Too Trusting

Double-check every Cash App-related transaction or communication—you can never be too sure. Scrutinize every piece of information you receive before taking any steps, especially when the other party initiates contact. 

When in doubt, visit Cash App’s official contact page and find a preferable way to contact the support team. Inquire about the offer, text message, or email you received to get more information on its legitimacy. Never feel pressured to act until you’re satisfied with your research.

What To Do if Someone Scams You on Cash App

Cash App only refunds scam transactions if your Cash App card was stolen or lost, or your account was compromised and you didn’t authorize the transaction. 

Here’s how to get money back from a Cash App scam and protect your funds:

  1. Quickly cancel the payment
  2. Report it to Cash App
  3. File a complaint with the relevant agencies
  4. Protect your funds ASAP

Quickly Cancel the Payment

If the scam payment is still pending, you can cancel it and your funds will be reversed. You must be quick about it because Cash App is a real-time payment platform. 

To cancel an unfinalized payment, head to your “Activity” tab and click the three-dot button (…), then select the payment and press “Cancel” to end the transaction before it’s fulfilled. If it works, the money won’t reach the recipient.

Report It to Cash App

There are few scenarios where a scammer becomes repentant and refunds your stolen money, so requesting a refund is a waste of time in most cases. Instead, immediately report the scam to Cash App so they can swiftly start the investigation.

Here’s how to report a scam on Cash App:

  1. Go to your profile icon and select “Support,” then “Report a Payment Issue
  2. Choose the scam transaction and follow the prompts to report it
  3. Dispute the transaction by heading to the “Activity” tab. Choose the scam payment you want to dispute and tap the three-dot button
  4. Click “Need Help & Cash Support,” then “Dispute this transaction” 
  5. Cash App will investigate the dispute and notify you about the decision

File a Complaint With the Relevant Agencies

There are a few federal agencies dedicated to helping resolve fraud claims. Log a complaint with the Federal Trade Commission (FTC), the FBI’s Internet Crime Complaint Center (IC3), and your state’s attorney general office, and they’ll guide you through navigating your fraud claim.

You also need to contact your local police department—not 911—and ask to file a report with the fraud department. This will help solidify your claims while you attempt to recover your money.

Protect Your Funds ASAP

If a scammer gains access to your sensitive financial information, they could use it to steal from your other bank accounts. This is why storing large savings or cash reserves in a traditional savings or checking account isn’t advisable.

Regular banks don’t provide adequate protection on your account to keep fraudsters out. If you suspect you’ve fallen victim to scammers, quickly move your savings to a high-security savings account like the one FortKnox offers. This will protect you from unauthorized transactions and keep the rest of your funds safe before scammers get to it and drain your account.

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