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Cash App, formerly known as Square Cashm, is a digital wallet created for American consumers. Launched in 2013, it allows users like you to send, receive, or save money, access your debit card, invest in the stock market or cryptocurrency, apply for loans, and file your personal taxes.
Cash App was launched in 2013 as a person-to-person money transfer service and was called Square Cash. In 2015, the app's functionalities expanded to support transactions involving businesses. As of 2024, Cash App had 57 million users, bringing in an annual revenue of $14.7 billion a year before.
In this Mysterium VPN blog post, we'll walk you through the most common Cash App scams and how to protect your financial information and your other personal data!
How Does Cash App Work?
You can download the Cash App for free on both Google Play and the Apple App Store, as well as other mobile app store platforms. While the basic functions of the app (ability to send money to someone), if you're interested in additional services, you'll have to pay small initial fixed costs plus percentage fees.
If you don't have a direct deposit account with Cash App, you'll be charged a $2 fee for withdrawing money from an ATM.
The app allows users like you to buy and sell crypto from their platform for a small service fee based on the current cryptocurrency market volatility. Businesses can also accept Cash App as a form of payment, and to do so, they charge you, the customer, a transaction cost of 2.75%.
Just like a regular bank, Cash App can lend money deposited by users to various institutions, charging interest, which is a process known as money creation. Cash App must hold 10% of their users' accounts liquidity as part of the fractional-reserve banking to protect depositors in the event of a bank run.
Is Cash App Safe?
First, here's what the people behind Cash App say about the app's security features:
"Cash App uses encryption and fraud detection technology to make sure your data and money are secure. Any information you submit is encrypted and sent to our servers securely, regardless of whether you’re using a public or private Wi-Fi connection or data service."
When it comes to buying and holding stocks, the Cash App team boasts of being a member of the Securities Investor Protection Corporation (SIPC), which means that the securities in your account are protected up to $500,000.
However, it's important to remember what is said in the fine print — Cash App is a financial services platform, not a bank. Cash App is just one of the many peer-to-peer payment platforms, like Zelle, Venmo, Apple Pay, and Google Pay, that don't offer features to help you recover money sent to others.
Since the start of the COVID-19 pandemic in 2020 and the boom in the use of payment apps, there has been a clear increase in reported scams. Fret not, however — that's why we're here. Let's dive deep into how you can avoid scams!
Most Common Scams on Cash App
Although Cash App has made sending and receiving money easy peasy, unfortunately, scammers have found ways to exploit innocent Cash App users.
The scammers dupe unassuming users into sending their money or giving up sensitive information. Because Cash App transactions are instantaneous and usually non-refundable, once you send payments, it’s usually gone for good.
Here is a brief overview of some of the most common Cash App scams.
Fake Customer Support Scams
The first and one of the most dangerous scams involves fake Cash App customer service representatives.
A scammer might call, email, or even message you on social media, claiming they work for Cash App customer support. Then, they’ll tell you that there’s a big problem with your account.
Depending on the scammer's mood, the problem may be a suspicious transaction, a login attempt from another device, or a security breach.
Finally, the scammer will ask you to verify your identity by providing sensitive information like your PIN, email, or even full login credentials.
In some cases, they may even ask you to download software so they can "help fix the problem," — but really, they're simply gaining remote access to your phone to wreak havoc.
Cash Flipping & “Money Circle” Scams
If someone on Instagram or Twitter promises they can "flip" your money, run in the opposite direction! This scam usually starts with a message like: "Send me $50, and I'll turn it into $500!"
Scammers may even show fake screenshots of huge cash deposits, pretending like it’s a real thing. Sometimes, they call it a "blessing circle" or "money blessing."
Sadly enough, the only one getting blessed is the scammer, and free money still doesn't exist. Once you send them money, they'll block you and disappear. No flipping, no returns, just an empty wallet.
Fake Cash App Giveaway Scams
Have you ever wished you could just bring some money into existence out of the blue? Scammers know you have! That's why many Cash App scams exist and are successful.
In this scam, scammers like to impersonate Cash App or popular influencers and claim they’re giving away free money. You’ll see posts like: “We’re giving away $500 to 100 lucky people! Just send $10 to enter!”
Again, free money simply doesn't exist. Real giveaways never require you to send money first. Thus, if someone asks you for a "small payment" before you can claim your prize, they’re just stealing from you.
“Accidental” Money Transfers
This one is sneaky! A scammer will "accidentally" send money to your Cash App account and then message you, asking you to send it back. You, the empathetic Cash App user, feel bad for the clumsy sender and rush to send it back. But here’s the catch:
The money they sent was stolen—probably from a hacked account or a stolen credit card. When the real owner of the money disputes the charge, Cash App reverses the transaction, meaning the scammer gets refunded while you lose the money you "returned," and your pure-hearted soul gets scammed.
Fake Job Offers
Scammers know that people are always looking for remote work and easy job opportunities, so they create fake job listings to steal your money or personal information.
A scammer posing as an employer will post fake job openings on job boards and Facebook groups or even message you directly on LinkedIn. The job sounds too good to be true—high pay, little experience required, and work-from-home flexibility.
In reality, there's no job. They either steal your money by making you pay upfront for fake training, send you a fake check, which bounces after you’ve already sent them real money, or drain your Cash App account if you share your login details.
QR Code Scams
QR codes have become more popular than ever, but scammers have figured out how to use them to trick people into giving away money or personal data.
Some variations of this scam include:
- Restaurant scams: Fake QR codes on restaurant tables that direct you to a phishing site instead of the actual food and drink menu.
- Parking meter scams: Scammers place fake QR codes over real ones, leading to a fraudulent payment page.
- Fake invoice scams: Scammers send you an invoice with a QR code, making it look like you owe them money.
Fake Rentals & Ticket Scams
Have you ever seen a too-good-to-be-true rental apartment listing or super cheap concert tickets? Don't fall for these dream-like opportunities, and keep your account secure from yet another Cash App scam.
Scammers often post fake listings and demand Cash App payment upfront to “secure” the deal. Once you send the money, they ghost you.
Romance Scams
Scammers use dating apps and social media to build fake relationships and the trust of potential victims before asking you for your hard-earned money.
They’ll bomb you with love and affection, send romantic messages, and could even go as far as promising marriage or a future together. But after weeks of sweet talk, they suddenly have an "emergency"—a hospital bill, car trouble, or even a plane ticket to come visit you.
You've probably heard of Simon Leviev, also known as the “Tinder Swindler.” His wicked story became famous after Netflix released a documentary about his crimes.
Leviev, an Israeli fraudster, pretended to be a billionaire's son and convinced women to send him thousands and thousands of dollars to help him escape fake “life-threatening” situations.
He used their money to finance a lavish lifestyle, flying on private jets and staying in luxury hotels while finding new victims to scam.
Pet Deposit Scams
If you’ve ever searched for a pet online, you’ve probably come across adorable puppies or kittens for sale at incredibly low prices. Unfortunately, many of these listings are completely fake, designed to trick animal lovers into sending money for pets that don’t exist.
Once you send the deposit, they'll stop disappearing and will stop responding to your questions and concerns. You never get a pet, and your money is gone.
Some scammers even go a step further, pretending to be legitimate businesses like a pet shipping company and demanding extra payments for “unexpected fees” like travel insurance, crate rentals, or vet bills.
Investment Scams
Investment scams prey on unfortunate people looking to make quick money to make ends meet, and with social media full of people showing off their “success stories,” it’s easy to get sucked in.
Scammers promise guaranteed profits and claim they can double or triple your money. All you have to do is send them a small “investment” through Cash App, which they'll grow for you. Sadly, this is just too good to be true.
Trust us: keeping your money safe from the bad guys will help it grow much more than transferring money to a scammer.
Phishing Scams
Phishing scams are some of the most common scams out there!
Scammers try to steal your money, and they do so by pretending to be someone you trust. In this case, it's fraudsters posing as Cash App. These scams usually start with an email, text message, or even a fake Cash App notification that claims there’s a problem with your account.
After you open their message and willingly put in your login details, the scammer now has access to your sensitive information, and they're free to do whatever they want with it; yikes!
What to Do if You Fall Victim to a Cash App Scam
Nobody thinks they'll be the next person to get scammed and lose money based on false scammer promises. If you've been scammed, don't panic — there are still steps you can take to minimize the damage and potentially recover your funds.
Contact Cash App Support
- Open Cash App and tap on your profile icon.
- Scroll down and select “Support.”
- Choose “Report a Payment Issue.”
- Select the transaction and explain why it was fraudulent.
- Submit your request and wait for a response.
Claim a Refund
- Open the Cash App and find the transaction in the activity tab.
- Tap on the payment and select “Request Refund.”
- Add a message explaining why you’re requesting the refund.
- Wait for the recipient to approve the request.
Report and Block the Scammer
- Open Cash App and go to your activity tab.
- Find the scam transaction and tap on the scammer’s profile.
- Select “Report” and “Block.”
Report the Scam to the Federal Trade Commission (FTC)
- Visit reportfraud.ftc.gov
- Click “Report Now” and follow the instructions.
- Include details about the scammer and how you were tricked.
Freeze Your Bank Account
- Call your bank and explain that your account may have been compromised.
- Ask them to temporarily freeze your account to prevent unauthorized transactions.
- Change your online banking passwords and enable fraud alerts.
How to Avoid Cash App Scams
- Use a VPN: Enhance your security on Cash App by encrypting your internet connection, protecting your data from hackers on public Wi-Fi, and reducing the risk of phishing attacks.
- Review all transactions upfront: Double-check payment details before hitting send. Scammers often change usernames or use similar names to trick you.
- Verify emails: Scammers send fake Cash App emails that look official. Never click links in emails claiming to be from Cash App—go to the app yourself.
- Turn on notifications: Enable transaction alerts so you’ll know instantly if any unauthorized charges occur.
- Only use Cash App’s official channels: Scammers pretend to be Cash App Support to trick you into sharing your login. Never trust random phone numbers or emails.
- Use 2FA: Adding an extra layer of security with two-factor authentication means scammers can’t access your account even if they steal your password.
- Don’t share personal information: Never give out your PIN, password, account information, or banking details. Not even to someone claiming to be from Cash App!
- Enable security lock: This feature requires a PIN for every transaction, preventing scammers from making payments if they access your account.
- Trust your gut: If an offer sounds too good to be true (like free money or guaranteed investments), it’s probably a scam. Listen to your instincts.
Final Thoughts on Cash App Scams
Falling victim to a Cash App scam can happen to anyone, but the faster you take action, the better your chances of recovering your money.
Always stay alert and aware, double-check transactions, and never trust strangers asking for money.
If you ever feel unsure about a payment or message, take a step back, verify the source, and trust your gut. Scammers rely on urgency and pressure; don’t let them rush you into making a bad decision.
