Cash App Scams You Might Encounter

Cash app scams have hit the world big time over the last few months. Though these scams don’t fall on my regular forex broker scams list, which includes subtle scams like ProfitFarmers, I thought I would bring them to your attention urgently. Many people have lost their hard-earned money or, worse yet, their retirement savings to these scams. It’s just so worrying to see how authorities can only do so much to safeguard people from them.

What Is Cash App?

Developed by Bloc Inc. (formerly Square Inc.), Cash App is a well-known mobile payment service available only in the US and the UK. Through it, you can send or receive money from another user. You can also bank, as well as buy or sell bitcoin or even stock.  

Cash App Scams and The Methodologies

Here are the numerous tricks scammers use to perpetrate Cash App scams out there:

1. Cash Flipping 

Cash flipping and clearance fee fraud are some of the most rampant cash app scams out there. A scammer, who may pretend to be an investment expert, will make you believe that they can help multiply your funds quickly for a small commission.  

The individual may pretend to be looking for funds to invest in a big project that is sure to generate huge returns within a reasonable duration of time. They may even offer you some form of assurance and guarantee that they will return the money, plus a substantial amount of profits as promised.  

So they deceive you into sending them money through the Cash App even as you look forward to gaining massive profits soon. 

But the moment they receive your money, you’ll never hear from them again.  

Just a word of caution: If someone tells you that they can help multiply your money quickly, chances are high that you are dealing with a scammer. Especially if they request you to send the money through Cash App or other similar services.

2. False Item Deposit 

Sometimes, Cash App scammers may claim to have nice items that they are planning to dispose of at a throwaway price. It could be “a nice sports car” that you’d never drive in your lifetime or anything else that is likely to entice you.

These guys will post their “offerings” on relevant Facebook groups and groups on other similar platforms. To convince you to send them money, they will lie to you that many people are interested in the same item you are, and therefore, you should send money through Cash App to reserve it.

Once you send the money, they’ll block you everywhere so that you won’t hear from them again. Cash App is popular with these scammers because its refund or chargeback policy seems to be a bit lax for scammers. 

Just a word of caution: unless you are buying from a reputable website or e-commerce platform that is licensed and regulated, don’t send money to reserve or buy something through Cash App. It’s better to do a one-on-one transaction where you pay the seller and take the item with you immediately after making the payment. Make sure you meet in a safe public space where no one can harm you. It also helps to go with a friend or someone you trust. 

3. Mistaken Payment Cash App Scams

A Mistaken payment sent is one of the simplest yet effective Cash App scams. A scammer may send money to your bank account through the app. A few minutes later, they’ll contact you to request that you return the payment while claiming it was a mistake.

A smart scammer may even ask that you take a small amount from the funds in exchange for the trouble. At the same time, they’ll also call their bank to cancel the payment altogether. At the end of the day, you’ll return the money, and your bank will also deduct the same amount from your account. Eventually, you’d have made a double refund.  

A Word of Caution: If you receive money from a stranger who then contacts you asking you to send it back, claiming that it was a mistake, please don’t cooperate with them. Let them sort it out with their bank and yours. If it were truly an accidental transaction, the stranger would be sorted out by the concerned financial institutions. 

4. Property Cash App Scams

A few months ago, a friend of mine was scammed through Cash App as a result of shopping for a house. 

You see, Mike had posted on social media that he was shopping for a three-bedroom house near the beach. A couple of days later, a lady contacted him, claiming that she had a nice apartment unit that fit the bill. She even sent him a few photos and videos of the house, pointing out that she already had a few prospective buyers. 

Impressed by the photos and videos and the fact that that particular house was going at a price way lower than his budget, he made up his mind to see the house. So, he called the lady to ask if he could do so on Sunday, which was just a few days away. 

Glad that Mike had been impressed even though he had not seen the house personally, she informed him that she was going to book a reservation as soon as she received 3k dollars. 

After sending the “viewing fee” through Cash App, Mike never heard from that lady again. 

Though he lost 3k dollars through Cash App, he got a nice apartment through a friend a few weeks later. Although he has since moved on from that unpleasant experience, he promised never to trust a stranger to the point of sending them money for an item he hasn’t verified. 

A Word of Caution: If you ever find yourself in a similar situation, back away from the deal. Never send any payment through Cash App, whether it is the agent’s fee or the buying price for a house you have not seen. If somebody asks you to do that, consider them a potential scammer. 

5. Payment Scams

Payment claim scam is one of the dumbest Cash App scams I’ve ever heard about. In this scam, a scammer will contact you out of the blue, telling you that you deserve a payment as a reward for something. For example, being a loyal Cash App user. But they’ll also tell you that to receive the payment, you must “claim” it by sending a small percentage of the money. I am surprised that some individuals may fall for it.  

A Word of Caution: If a stranger asks you to make a payment claim, get rid of them immediately because that’s a scammer. Block communication with them because you’ve better things to do with your time than waste it tolerating a fraudster. 

6.Phishing

Now this one reminds me of a guy known online as “Ray Hush Puppi” who scammed so many big companies millions of dollars through phishing. He became so rich that he lived largely in Dubai and Malaysia until his arrest in 2020 by the FBI in conjunction with Interpol and other law enforcement authorities. You can read the story on CNN’s page. 

What Ray Hush Puppi would do is gain access to the email inboxes of companies. He would then read the emails, mainly taking note of pending payments. He would then intercept email messages from creditors and replace their bank account details with his before sending them to the intended recipients. Companies would then send payments to his bank account unknowingly, instead of to their creditors’ bank accounts. 

This form of scam is still rife on Cash App, and anyone can fall victim. 

Just a word of caution: keep your finance-related emails secure. There are many ways to make it hard for scammers to hack into your email inbox. This includes not clicking on suspicious links, installing anti-phishing software, not leaving your sensitive information on insecure websites, updating your passwords frequently, and so on. 

By the way, ProfitFarmers, Mayfair Investments, and all the other scam brokers I’ve covered on Scamreader ask for too many sensitive personal details that can leave you susceptible to phishing attacks. You should avoid submitting your details carelessly online. 

Will The Company Refund Me If I Was Scammed?

Cash App stated on its Payment Cancelled page that it monitors customers’ accounts for potentially fraudulent payments. If it detects anything suspicious, it immediately cancels a payment to prevent a scam. Canceled funds automatically return to clients’ linked bank accounts or Cash App balances. So yes, the company will refund you, so long as they detect the scam. 

This policy may also turn out to be an inconvenient double-edged sword sometimes. The company may cancel your payment if it incorrectly thinks that it was a suspicious one. To avoid this situation, only link a bank card that is in your name. Additionally, confirm the $Cashtag or phone number of the recipient before sending money. Furthermore, use your Cash App frequently to establish a clean transaction history. Finally, avoid receiving or sending payments to strangers via the app. 

Final Thoughts 

While Cash App provides convenience when it comes to mobile money transfers, it’s not without its fair share of challenges. One of the biggest challenges is scams. 

Cash App scams have become rampant in the US and the UK. The app attracts scammers because of its limited regulation, lax refund policies, and limited security measures. Over the years, the software or app for mobile money transfer has been hit by all manner of scams. False cash flipping, item deposits, mistaken payments, property offers, phishing, and payment claims are some of them.

Have you ever or almost been scammed through Cash App? Feel free to let us know in the comments section below.

Pursue Lost Funds

Fallen victim to a Cash App scam? Visit this page to report the fraud and seek help.