As the number of people using digital payment platforms like Cash App keeps growing, so does the number of scams that involve them.
There are many different kinds of Cash App scams, and some are more sneaky than others.
In this guide, I will explore 15 common Cash App scams to be aware of in 2023 and provide tips on how to avoid falling victim to them.
How Do Cash App Scams Work?
Cash App scams are fraudulent schemes that target users of the popular peer-to-peer payment app. Scammers use various tactics to deceive users and steal their money.
Here are some common types of Cash App scams and how they work:
1. Refund Scams
Scammers exploit users’ trust by pretending to be Cash App support agents. They may contact you, usually via unsolicited emails or messages, claiming that you have a pending refund due to an overpayment or a technical error.
They will ask for your account information to process the ‘refund‘. However, instead of getting a refund, the scammer drains the account.
Note that Cash App support will never ask for your login details. Always initiate contact with Cash App customer service through the official app or website.
2. Fake Check Scams
Scammers use the allure of easy money to trick you into depositing a fraudulent check into your Cash App account.
After you deposit the fake check, the scammer might ask for part of the funds back before the check is detected as fake.
Alternatively, they may persuade you to purchase items for them. By the time the bank flags the check as a fraud, the scammer has disappeared, and you’re responsible for the funds.
If you receive an unsolicited check, it’s probably a scam. Verify the sender’s identity before depositing any check.
3. Advance-Fee Scams
Scammers play on people’s greed and desperation to trick them into paying an upfront fee for a much larger sum of money.
They might pose as a lottery or sweepstakes official, a charity organization, or even a wealthy individual looking to share their wealth.
Once you’ve paid the upfront fee, the promised larger sum never materializes.
Remember that genuine organizations will never ask for an upfront fee to release your winnings or donations.
4. False Payment Scams
Scammers will send you a fake payment confirmation email or screenshot to trick you into thinking you have paid for goods or services.
The scammer will then receive your goods or services without ever having paid for them.
Always verify payments directly through the Cash App, and do not trust screenshots or email confirmations as they can easily be manipulated.
5. Random Money Transfer Scams
In this scam, a stranger sends you money on a Cash App and then claims it was sent by mistake.
They ask that you send it back. However, they may use stolen bank account information to make the initial transfer.
When the fraud is detected, the initial payment to your account is reversed, and if you’ve already sent the ‘refund’, you will lose that money.
If you receive money from an unknown source, it’s best to not respond and contact Cash App support immediately.
6. Scams Involving Stolen Credit Cards or Bank Accounts
Scammers with stolen credit card or bank account information might send you money.
Then, they ask you to send it back to a different account, effectively cleaning up the stolen money.
When fraud is detected, the original payment is reversed, and you are left out of pocket.
Always verify the identity of people who send you money and report suspicious activity to the Cash App and your bank immediately.
7. Social Media Scams
Scammers impersonate Cash App on social media platforms, promising prizes or giveaways to users who share their posts or provide personal information. They may use the information to steal your identity or drain your Cash App account.
Be careful when sharing personal information on social media, and always verify the identity of the accounts you interact with.
8. Blessing or Giveaway Scams
In these scams, scammers create groups on social media promising blessings or giveaways in return for a small ‘donation’.
They may claim that your money will multiply several times over. In reality, the money goes straight to the scammer’s pocket, and you’re left with nothing.
Always be skeptical of any financial transaction that requires you to donate or pay upfront for a larger return.
9. Purchase Scams
Scammers may offer high-value items for sale at a low price, asking for payment through the Cash App.
However, once you’ve sent the money, they disappear, leaving you without the item you paid for. Always purchase from reputable sources and use Cash App’s $Cashtag feature, which allows for payments without sharing personal information.
10. Fake Deposit Scams
Scammers, posing as potential employers or investment agents, inform you that you have received a deposit.
They ask for your account information to ‘verify’ your identity and process the deposit. Instead, they use the information to drain your account. Never share your login details, and always check your account independently for any deposits.
11. Sextortion Scams
In sextortion scams, scammers trick victims into sharing intimate photos or videos, which they then threaten to distribute unless a payment is made through the Cash App.
This is a criminal act. If you become a victim of such a scam, do not engage with the scammer. Instead, contact your local law enforcement agency and Cash App support immediately.
12. Stolen Information Scams
Scammers may buy or steal personal information from data breaches and use it to gain access to your Cash App account.
They might then drain your account or use it for money laundering. Protect your personal information and use two-factor authentication to secure your account. Regularly monitor your account for any unauthorized transactions.
13. Account Mule Scams
Scammers recruit ‘mules’ to move illicit funds through their Cash App account, making it harder to trace the money back to its illegal source.
Scammers may lure potential mules with promises of quick cash for little work. Avoid any arrangements where you’re asked to transfer money on behalf of a stranger, as this is a form of money laundering and is illegal.
14. Sugar Daddy/Momma Scams
Scammers pose as sugar daddies or mommas, luring victims with promises of generous allowances.
After gaining the victim’s trust, they ask for banking details, personal information, or advance payments.
Never share your personal information with strangers online, and always be wary of any offers that seem too good to be true.
15. Fake Cash App Email Scams
Scammers send phishing emails posing as Cash App, suggesting that your account is at risk and prompting you to click a link to confirm your identity.
The link directs you to a fake website that captures your login details when you enter them.
Always double-check the sender’s email address, never click on suspicious links, and remember that Cash App will never ask for your login details via email.
Verified emails from Cash App will always come from an address starting with @cash.app, @square.com, or @squareup.com.
Tips: If you have not already, you can sign up for a Cash app account and earn a referral bonus. Figure out how?