Cash App scams — how to recognize them and stay safe

What is Cash App?

Cash App is a person-to-person (peer-to-peer or P2P) money transfer service that allows users to save and exchange funds. In addition to these features, the app also offers debit cards, investment opportunities (stocks and bitcoin), personal loans, and tax filing services.

How to recognize Cash App scammers

When it comes to Cash App scams, a few telltale signs immediately reveal that something may be wrong. Here are some signs of a potential Cash App scam:

• Individually tailored messages regarding the safety of your Cash App account. Apps rarely have reasons to contact customers individually. Moreover, Cash App knows that if its support team starts calling people, the likelihood of users getting scammed will increase. If someone working for Cash App says they need to get in touch, take the message with a grain (or a spoonful) of salt.
• Offers that look too good to be true. If a deal appears too perfect, it often comes with a catch. Scammers will try everything to entice you into believing a deal is legitimate. So if you spot insanely cheap prices on otherwise expensive hardware, think twice before purchasing.
• Suspicious deposit requests. If an unknown seller is trying to get you to pay to reserve an item, it’s likely that you're already in the thralls of a scam. Once the deposit has been paid, the seller will suddenly disappear along with your money.

Are Cash App scams common?

Cash App scams are relatively common. With at least 57 million users (2024 data), the platform is one of the biggest digital wallets in the world. That automatically makes it an attractive target for scammers. Therefore, it’s no surprise that bad actors use all their ingenuity to bombard other Cash App users with various online scams, such as cash flipping or phishing.  

Common Cash App scams

Malicious actors have at least a dozen Cash App scam tactics (including Covid-19 scams and Navy Federal scams) up their sleeves. Here are some of the most common scams related to Cash App.

Cash Flipping scams

Cash flipping scams are a type of fraud that promises potential victims to "flip" or multiply small sums of money quickly. Scammers contact the targets with fake success stories, offering to turn $50 into $500 (or bigger sums) by leveraging "special systems" or inside knowledge. The targets may spend anywhere between $100 and $1,000 with hopes of doubling or tripling their money on Cash App. However, in reality, the scammers will disappear the second the payment goes through.

Posing as Cash App support

Many common Cash App scams involve scammers posing as customer support agents. They contact their targets directly, lulling users into a false sense of urgency. Typically, the messages contain information about “problems” with Cash App accounts or allegedly canceled payments, prompting users to provide their sensitive information (email, password, PIN) to solve the issue. In reality, however, fraudsters use the data to hijack the victim’s accounts and perform identity theft.

Giveaway scams

Giveaway scams are common on many social media or financial apps, including Cash App. Fraudsters know people can't resist a good bargain, so they'll offer goods and services with massive discounts (sometimes even for free). However, as the saying goes, free cheese can only be found in a mousetrap.

It’s also important to note that users sometimes misunderstand what Cash App does, or rather, what it doesn't do. For example, if you send someone money for a product, the service can't refund you if the deal goes south. It is not a marketplace, just a platform to exchange money.

Random deposit scams

Random deposit scams occur when malicious actors deposit unexpected amounts of money into the target’s Cash App (or similar payment platform’s) wallet. Victims, often honest and unsuspecting individuals, return the money to the sender, believing it was sent in error. However, since the money deposited into the victim's account often originates from a stolen bank or credit card (or hacked account), the transaction gets flagged by financial institutions. After that, the initial deposit is reversed, leaving the victim out of pocket for the amount they refunded to the scammer.

To sell the scam, threat actors frequently add notes to the transaction, such as “rent,” “upfront payment,” or “debt,” to confuse targets and make them believe the deposit was accidental. They often create plausible scenarios, such as a mix-up in rent payments or a misplaced deposit for a new pet. In many cases, scammers may contact the target directly to “apologize” for the supposed mistake and request a deposit return. Some scammers may also send phishing links, tricking victims into revealing bank account information and other sensitive data.

Accidental payment scams

Accidental payment scams are largely similar to random deposit scams. Fraudsters send Cash App payments to their targets, pretending to have made a mistake while choosing the recipient. The scammers then quickly contact their target to inform them about the “mistake” and to politely ask for money to be sent back. The ultimate goal of this scam is to trick the victim into sending their own money, often before the "sent" scam payment bounces or is reversed.

Accidental payment scams rely heavily on social engineering tactics, such as creating a false sense of urgency and appealing to the victim's sense of honesty and guilt. These tricks alone can be enough for scammers to entice their victims into transferring money or providing sensitive information.

Phishing scams

Cash App phishing scams usually come as phishing links sent to users through emails or text messages. Scammers create scenarios such as fake giveaways, bogus refund offers, or warnings about suspicious Cash App payments to catch the target’s attention and encourage them to act. The phishing links in these messages lead to fake websites (typically those resembling the Cash App’s login page) designed to steal any information users type in the text fields. If the target falls for this scam, phishers can use stolen credentials to hijack the victim's Cash App account, exposing them to financial loss and identity theft.

Cryptocurrency Scams

Since 2018, Cash App customers have used this platform for Bitcoin trading. However, while the move to include Bitcoin helps the service stay relevant in the online financial space, it also opens the door for scammers. Cash App Bitcoin scams range from fake crypto investment opportunities to cryptojacking scams (tricking users into downloading malware that secretly uses the victim's device to mine cryptocurrency). Unrealistic promises, suspicious "verification" links, and payments that you've received "by mistake" are among the biggest red flags you should beware of when trading Bitcoin (or any other cryptocurrency, for that matter).

Payment claim scam

Payment claim scams (as the name suggests) press users into paying for fake goods or services. Scammers contact their targets pretending to be members of reputable companies and institutions and ask for payment for subscription renewals or account recoveries. Sometimes, the messages may include keywords such as "overdue bill," "misplaced payment," or "missing payment." Bad actors may also try to create a sense of urgency, threaten the recipient, request advance payments, and even send phishing links to maximize their chances of success.

Fake #CashAppFriday scams

For a while, Cash App offered giveaways in which users could win cash prizes. However, hackers quickly took advantage of this opportunity to create their own fake #CashAppFriday scams, which some users may still encounter today. Some scammers even launch fake raffles, encouraging users to send the organizers small amounts of money or Cash App credentials. 

To avoid getting “stung by a dead bee” (suffering harm even when the threat has seemingly passed), users should keep their guard up and avoid engaging with any messages or posts regarding this giveaway (unless it comes from official verified Cash App communication channels, such as Cash Support).

Social Security number scam

While your Social Security number (SSN) is private, in some rare cases, you may need to provide it to an employer or a financial institution (such as a bank). Knowing that scammers may pose as Cash App support to try and lure this information from the platform's users. It's important to remember that most online services do not require your Social Security number, so you should never disclose it before making sure the request is legitimate. If requested to provide your SSN, double (or even triple) check the message and its sender (contact customer support for absolute certainty) to avoid falling into this trap. 

Catfishing scams

Cash App catfishing scams usually begin on social media or online dating sites and apps. Scammers use fake or stolen profiles to build a connection with their target and gain their trust. After a while, the fraudster starts asking for money transfers, using excuses such as unexpected medical bills, financial emergencies (such as being stranded while traveling), or even investment opportunities. Sometimes, bad actors may even ask for money to come and see the victim in person. However, in reality, the scammer and their “love” disappear as soon as the transfer goes through or when the target becomes suspicious (sometimes after the second or third payment).

Cash App's safety features

Cash App offers a few particular safety features to protect its users.

• Security locks. Biometric verification (Touch ID, Face ID) and Cash App PIN are required to authorize payments.
• Encryption. Cash App uses end-to-end encryption to safeguard user's money and payment data, ensuring more privacy and security.
• Card block. Cash App allows remote card blocking (in case you lose it).
• Notifications. Push notifications, text, or email notify users of every transaction and any suspicious activity.
• Fraud protection. Cash App fraud detection technology may notice and cancel suspicious transactions, protecting you from unauthorized charges.

How to protect yourself from Cash App scams

When it comes to protecting yourself from Cash App scams, knowledge is power. If you recognize all the call signs of a scam, you'll know exactly how to avoid them. Making an expensive purchase? Verify the item is real. Don't immediately send money over. Always think twice and do your research before committing to a money transfer. Remember, vigilance and a cool head are the best antidotes for scammers' tricks.

Another good tip is not to limit your vigilance to the Cash App only. Due to the platform’s popularity, you can encounter money-related scams across different platforms. Cash App scams on Facebook and Instagram, as well as OfferUp scams, are a common sight and a looming threat for unsuspecting users. 

In addition, since 2020, the Cash App has been approved for use by 13- to 18-year-olds, exposing them to scams. Therefore, educating the teenagers in your family about the Cash App risks is an important step in safeguarding them and yourself from phishing, cash flipping, random deposits, and other scams on this platform.

That’s not all — here are some additional measures you can use to protect yourself from potential scammers.

Use a strong password or password manager

In an ideal world, every person should have a different strong password for every account. However, people have many online accounts, and remembering too many passwords is exhausting. Using password managers (such as NordPass) can be a great way to strengthen your passwords and keep your mind at ease.

Use multi-factor authentication (MFA)

MFA (or 2FA) is one of the most robust cybersecurity measures for everyday users. It creates a second layer of confirmation (typically a code accessible through your mobile phone app) that is necessary to approve before accessing your online accounts. If someone tries to use your login credentials (for example, to try and remotely access your Cash App account), MFA will prompt a notification with the request for you to review. If it's an unauthorized access attempt, all you need to do is cancel the request, and malicious actors will not be able to hijack your account.

Avoid sending money to people you don’t trust or know

Scammers often rely on vagueness and fake accounts to conceal their identity. Therefore, ensuring you know (or can at least verify) the person you’re transferring money to is important. Remember, better safe than sorry!

Enable notifications to monitor every transaction 

Enabling notifications for Cash App transactions will help you notice suspicious and unauthorized money transfers and hidden charges. That will allow you to contact Cash App support (or authorities) quicker, reducing your chances of falling victim to financial scams. 

What to do if you have already been scammed on Cash App

If you got scammed on Cash App, it’s all about the damage limitation. Since scammers act quickly, you must respond as soon as you notice the scam. Here are the main steps you should take care of immediately after suffering a Cash App scam.

Report the transaction as a scam

First, record every detail of the criminal and report them to Cash App's customer service, Cash Support. The sooner you do that, the quicker the Cash App team can try to freeze or reverse the payment before the scammer can get away (although success depends on whether the scammer has already withdrawn the funds or transferred them elsewhere).

Report the scammer’s profile

After reporting the transaction, immediately do the same with the scammer’s Cash App profile. Even though scammers often use fake profiles and aliases to mask themselves while scheming, reporting the account can prompt Cash App to investigate and potentially suspend it, reducing the chances of further harm to other users.

It's also good to check whether your bank refunds scammed money, so contact it and find out. While you might not get your money back, at least you can potentially stop future scams.