Cash App has exploded in popularity and so have concerns about its safety. Not only do we have to be worried about scammers and hackers, but now the government wants to have a piece of it as well.
SO, let’s try and answer the question – Can Cash App be traced?
Cash App keeps track of all your personal information and your transaction and payment history. It also complies with the law and may turn over your data to law enforcement agencies.
Keep on reading to find out what information Cash App collects from you, does it give this information to the government, and whether you can delete it.
Does Cash App Report Your Transactions to The IRS?
Cash App now has to comply with new laws and regulations that require them to report certain groups of users to the IRS. The company basically has to report the sale of goods and/or services that happen through the app.
You may have heard that everyone’s incomes over $600 annually were going to be reported to the IRS. However, that’s only confirmed for business accounts, at least with Cash App.
$600/y is such a small threshold if we know that the previous threshold was $20,000 per tax year!
Because of the new legislature, from January 1, 2022, Cash App started to declare payments for goods and services on Form 1099-K if the transactions totaled $600+ in a year.
If you’re worried that this might also apply to you, the website clearly states that sending or receiving money between friends and family to send gifts, pay for dinners, or split bills, isn’t reported to the Internal Revenue Service (IRS).
Information Cash App Collects About You
Cash App collects a fair amount of personal data from you. The data is used to make Cash App work better for you and others.
It’s definitely important to collect some data about you, otherwise, the app simply wouldn’t work. Also, when you send a customer support request, it’s necessary to verify your identity and your account, so that they can provide help and tech support.
Here’s the type of information Cash App collects about you.
The personal information that is used to identify you includes the basics such as your name, phone number and email address, your zip code, $Cashtag, signature, and the information you use to log in to your Cash App account, as well as your IP address.
You can’t really have a financial app without collecting the above-mentioned info because you have to comply with the law.
Financial information includes your bank account, payment card numbers you add to your Cash App account, plus your Cash Card number if you have the debit card.
If you don’t link your bank account, then obviously this data isn’t collected.
This type of information includes all the data needed to make, accept, or request payments. For instance:
- Time and place of the transactions
- The names of the transacting parties
- Transaction description
- The transfer amounts
- The devices and payment methods
You have a choice to let Cash App access your phone contacts by uploading them to Cash App. Why would you do that? The company lists several reasons:
- You can find the people you want to send money to easier
- To invite your friends to Cash App
- For account and identity verification
- For fraud prevention intentions
- To reduce the risk of sending money to the wrong people
- To provide additional personalized services
You can at any time update your settings to stop sharing the phone contacts with the company. However, when you’re sending payments, you’ll still have to enter the recipient’s phone or email address.
Verified Users Information
If you want to increase your Cash App limits, you’ll need to give the company additional information that includes:
- Date of birth
- Your full address
- Identification (passport or driver’s license)
- Social Security Number
- A photo
As we already mentioned, this very personal information is used to increase payments that you can send and receive as well as to purchase Bitcoin.
Cash App traces your device’s location, the IP address, the location of your network provider, and even your device’s language for some reason.
You can however disable geo-tracking in your phone’s settings. That could mean that some of Cash App’s features won’t work. Nevertheless, it’s best to turn this off and see for yourself how much it impacts the app’s usability.
Other data that Cash App is actively collecting is your device’s:
- Hardware model
- Operating system and version
- Device name
- Unique device identifier
- Mobile network information
- Information about the device’s interaction with Cash App’s services
Internet And Other Electronic Network Activity Information
A lot of information is collected about how you use and interact with Cash App. There’s some stuff that’s straightforward and some that really shouldn’t concern Cash App:
- Login and logout info
- Date and time
- Your access time
- Browser and language
- IP address
- The domain name of your internet service provider
- Pages you visit on Cash App
- Content you view and features you use
- Your search terms
- The website you visited before you used Cash App
Cash App draws certain assumptions about you and creates a user profile. The profile includes your preferences, characteristics, and behavior that’s pulled from the information they have collected about you and from you.
READ ALSO: Cash App Bank Statement (How to Get it)
Does Cash App Share Your Information
As is the case with most US companies, especially fintech companies, they will concede to government offices, departments, laws, regulations, legal processes, and any other governmental requests that include:
- Tax authorities
- Law enforcement agencies
They will supply your information to defend their, and their customers’ rights, protect the security or integrity of the service, investigate suspected illegal activity, and to ultimately protect their company, its users, or the public from fraud, harm, or potentially restricted or illegal activities and actions.
Does Cash App Keep Your Information Secure
Every company under the sun thinks or claims they keep your information safe and secure. However, that is not always the case.
Cash App also declares they “do a lot to keep your data safe”. However, as they say, no one can ever guarantee that hackers won’t be able to break into their systems and pilfer your data.
This is exactly what happened to more than 8 million Cash App users in 2022 when an ex-employee downloaded users’ names and brokerage account numbers, plus portfolio value, holdings, and some trading activity.
Luckily, the exposed information “only” included the investing side of the app and not the P2P side.
How Long Does Cash App Keep Your Information
Cash App supposedly keeps your information as long as you don’t delete the account and you keep using their products and services. However, even after that period, Cash App will keep it for as long as they think is needed.
Here’s why they will keep your data longer:
- To collect any fees you owe
- To follow the law
- To fight fraud
- To resolve disputes with or involving you
- To enforce the agreements
- To defend their rights in court
Right to Delete Your Data
You have the right to ask Cash App to delete personal data the company has collected from you. After you ask the company to delete your info, you won’t be able to use Cash App anymore (unless you open a new account) because the account itself will be deleted.
But, as you can see above, the company may keep your data as long as they feel is necessary. How long that period is, we aren’t able to tell, nor does the company disclose.
They only state that they will keep it “as long as reasonably necessary to provide you the Services or to comply with applicable law.”
Cash App collects a lot of your data. Most of it for good reason – that the app can function properly for you and others.
However, the company does keep records of all of this personal information even after you close your Cash App account and will agreeably hand it over to the authorities if warranted.
Adrian Volenik is a fintech enthusiast who loves testing and reviewing digital banking apps and financial products in general. How many digital banking accounts can one man have? Not enough, if you ask Adrian. As his wallet will soon explode if he doesn’t cut back on the number of cards.