Payment App Scams To Watch Out For In 2024

Payment apps such as Cash App simplify the process of sending and receiving money online. However, even with their robust security features, users have still become a target for scammers. This year, make a resolution to protect yourself from scammers by identifying red flags. Here are some common scams to watch out for on payment apps in 2024 and how you can protect yourself from falling victim to them in the new year.

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Find out about the top 5 ways to avoid payment app scams, to keep your money safe according to Cash App.

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Cash Flipping and Clearance Fee Scam

Cash flipping and clearance fee scams have become increasingly popular with the rise of electronic transactions and online money transfers.

The scam: The scammer will provide bank account information or a payment app username to which you should transfer the money, promising to send double or triple the amount in return. However, once you move the money, the scammer will disappear, leaving you no way to recover your funds.

Red flags: Notably, no legitimate businesses offer “flipping cash” or “doubling money.” These are techniques scammers use to lure victims and steal their cash. Also be wary of offers that seem too good to be true. Any offer promising a return on investment that exceeds the usual market rates or appears to be a get-rich-quick scheme is most likely a scam.

Protect yourself: These fraudulent schemes usually attract desperate individuals looking for quick money by offering to double or triple their investments in a matter of hours. They claim to have access to insider trading secrets or other unconventional methods of making money they are willing to share with you—as long as you send a “clearance fee” or “account verification fee” first. In general, confirm the identity of anyone you are sending money to, and if it sounds too good to be true, it probably is.

Payment-Claiming Scam

The scam: A payment-claiming scam is a fraudulent scheme where a scammer convinces you to send them money to “claim” a payment you supposedly deserve.

Red flags: If someone poses as a representative of a legitimate business or company and claims you won a prize or are eligible for a refund or compensation, be wary. In this scam, the “representative” will ask you to send them money to “process” or “unlock” the payment, promising you will receive a larger amount in return.

Protect yourself: To avoid becoming the target of a payment claiming scam, be vigilant and cautious of unsolicited calls or messages promising free money or prizes. Before sending cash, verify the legitimacy of the company or organization by researching the company online, checking its official website and contact information and looking for reviews or complaints from other customers. Never send money to someone you do not know or have not met in person, especially if they request funds to release a payment or want payment in exchange for a larger amount.

Puppy/Pet Deposit Scam

The scam: With a pet deposit scam, a scammer will offer to sell purebred, highly sought-after puppies or kittens at an extremely low price.

Red flags: These scammers will post fake photos and avoid communicating over the phone—instead insisting on payment through a payment app or another platform. The scammer will ask for a deposit to secure one of the animals, sometimes claiming that the demand for these pets is high and that they will soon be sold out. Once you pay, the scammer will disappear and cut off all communication.

Protect yourself: When dealing with pet deposit scams, be wary of extremely low prices for expensive and popular pet breeds. Scammers often use this tactic to attract potential buyers who hope to buy these animals at a reduced rate. Research the seller and read reviews from other buyers who have purchased from them.

Another common red flag is insisting on payment through payment apps or requesting a large deposit to secure the purchase. Legitimate breeders do not typically require a deposit or payment until the buyer can physically view the animal and ensure it meets their standards. Because payment apps can’t always guarantee a refund if you don’t receive what you pay for, arrange to meet the seller in person and meet the animal before making a payment.

Apartment / Home Rental Deposit Scam

An apartment/home rental deposit scam is when a fraudster asks you to send a deposit through a payment app before touring the rental property or signing a lease agreement.

The scam: The scammer will convince you with claims of a too-good-to-be-true rental deal, usually at a discounted rate. Once you send the deposit, the scammer will disappear with your money, leaving you with no apartment or way to recover your funds. This scam usually happens to people looking for rental housing on a tight budget or in urgent need of housing.

Red flags: Scammers may use fake profile names or profiles with suspiciously low transaction volumes. They may also ask you to pay the deposit through a friend or a family member’s payment app account, a clear sign of a scam. Additionally, the scammer may rush your decision-making process, giving you little time to consider the deal or other rental options.

Protect yourself: Avoid sending any money to rental property owners or their agents before physically viewing a property or signing a lease agreement. Also verify the legitimacy of any rental property by researching the property online, calling the property manager or asking for references from previous tenants. Never send money to anyone who claims to provide rental services without proper verification.

Mistaken or Accidental Payment Received Scam

A mistaken or accidental payment scam is when a scammer intentionally sends you a payment on a payment app and then asks you to refund them, citing that the payment was a mistake.

The scam: After you receive the mistaken payment, the scammer will dispute the transaction, so you lose both the refunded amount and the original payment.

Red flags: Besides receiving a payment you’re not expecting, scammers will use various other tactics, such as posing as friends or acquaintances to gain victims’ trust and convince them to return the “mistaken” payments.

Protect yourself: To avoid mistaken or accidental payment scams, never send money to someone you do not know—even if they seem trustworthy. If a stranger sends you money by mistake, it is best to decline the payment and inform the person of the error. Also be wary of refund requests, especially if they come from someone you do not trust or have never interacted with. Scammers use social engineering techniques to gain your trust, so it is essential to scrutinize every interaction you have, especially when sending or receiving money.

Tips on How To Stay Safe With Cash App

With the convenience of financial transactions at our fingertips, it’s essential to safeguard yourself from scams. Cash App employs cutting-edge encryption and fraud detection technology that protects your data and money when using the platform. Even with these advanced security features, payment apps can still be targeted by scammers who exploit user trust. Make a resolution to avoid scams on payment apps and protect your hard-earned money in the new year.

• Confirm the identity of the recipient before sending funds.
• Never share your login credentials, PIN or any other sensitive personal information with anyone—not even with people or organizations claiming to be Cash App Support.
• Be skeptical of offers that seem too good to be true.
• Password-protect your mobile device to keep login details out of the hands of fraudsters.
• Enable Cash App’s Security Lock setting so every payment requires a passcode, Touch ID or Face ID.
• Enable two-factor authentication to add an extra layer of security to your email account.
• Regularly monitor your Cash App transaction history for suspicious activity.
• Always double-check the source of any email, message or call asking for your personal information.
• If you suspect any fraudulent activity on your account, report it immediately in app to Cash App Support.

Cash App

Pay anyone instantly

It's free to send and receive money, stocks, or bitcoin from within Cash App

Trust and security

Find out about the top 5 ways to avoid payment app scams, to keep your money safe according to Cash App.

Cash App

Learn More

On Cash App's Website

What To Do If You Get Scammed

If you believe you have fallen victim to a scam while using Cash App, there are things you can do to mitigate potential damage.

• Contact Cash App Support. Reach out to Cash App Support immediately via phone at (800) 969-1940 or through the app.
• Dispute the transaction. Contact your bank or card issuer, inform them about the unauthorized transaction and start the dispute process.
• Report it to authorities. Report the scam to the Federal Trade Commission (FTC) through ReportFraud.ftc.gov.
• Change your Cash App PIN. Protect your account from further unauthorized access by changing your Cash App PIN immediately. Also set up two-factor authentication if you haven’t done so already.
• Monitor your account activity. Regularly review your account transactions to detect unauthorized activities.