Making easy money is something we all want. That’s why we buy lotto tickets, scratchcards, go to bookmakers, and lately, buy crypto and NFTs.
We do this in a bid to turn our $20, $50, or $100+ into $200, $500, or $1,000+. It requires little to no work and gains could be “astronomical”. That’s where scammers come in.
If someone’s offering you a chance to 10x your money in a few moments or days, should you take it?
Cash App flip promises to deliver significant gains in exchange for an advance payment. These types of offers that usually come over social media are well-known scams that have parted tens of thousands of people with their hard-earned money.
What is Cash App Flipping?
Let’s first get this out there. There are NO legit businesses that are flipping cash. Why would anyone give you free money?
Banks, for example, will lend you money after extensive background checks and endless paperwork. In return for the money, you will pay a lot of money in interest until you return it.
There’s a trail of paperwork that you, and they, can refer to if there’s a dispute. They are also only lending you the money and not giving it outright to you.
There are many premises of cash flipping scams. However, the general idea behind it is that a scammer will offer to multiply your money if you just hand it over to them. Just like that.
Now, why would anyone do this? Hand over money to a stranger? Well, sometimes, the person on the other side of the phone, isn’t a stranger, but a person you know that has fallen for the same scam already or whose social media account was hacked.
Other times, the offer is “just too damn good.”
According to the FTC, complaints concerning payments through Cash App grew by 472% year-over-year in 2020. Largely due to the pandemic and increased usage of payment apps such as Cash App, Chime, Zelle, Venmo, and others.
How Does Cash App Money Flipping Scam Work?
Scammers have many MOs when it comes to acquiring their victim’s money.
Many times, they will impersonate Cash App support over social media or directly in Cash App to persuade you to hand over the money and/or your personal details and passwords.
Other times, scammers will take over your friend’s social media account to post a testimonial of how your friend already got free money from them.
In that case, your friend has already fallen for a scam and they persuaded them to make a video and hand over their Facebook password, for example.
That enables them to post the testimonial video to their Facebook account in order to persuade others to participate in the scam.
Here’s an example of such a testimonial video:
Cash flipping is known by many other names such as the “Giving Circle,” “Blessing Circle,” “Mandala Game,” “Infinity Loom,” and similar, and is a chain letter-type of pyramid scheme that has been around for ages.
This type of Cash App flip is usually asking a person to give $100 in order to get back $800 while at the same time you should bring other people close to you to the pyramid to bring “good luck” to them.
Not only are you the victim here, but yet again, people close to you might potentially fall for the scam because of you.
Once the “players” run out of new people to bring into the circle or pyramid, the money naturally dries up and everyone comes up empty-handed.
How to Stay Safe and Avoid Scams on Cash App?
There are some general rules you should adhere to when using Cash App to send money:
- Always send money to somebody who you trust
- To confirm that you’re sending money to the right person, double-check and verify all of the recipient’s details before transmitting any payment
- To determine if it’s the correct person, check their profile
- Don’t send funds to people promising you something in the future
What Are Some Warning Signs of a Potential Scam?
There are some telltale signs to look out for in scams.
For instance, there’s always a guarantee involved that you’ll definitely and easily make money. It’s important to not trust these claims as they’re a clear indication of a scam.
Many times, there’s a celebrity endorsement or testimonial included. These can be efficiently faked. Guaranteed returns are also a huge red flag.
Remember, free money promises are always fake as well as big claims without details or explanations.
Is it Safe to Send Money to People You Don’t Know?
Cash App and other similar financial apps are generally meant for sending money to people you know and trust. Cash App to Cash App transactions are instant and in most cases can’t and won’t be canceled.
To be sure if a transaction or payment can be canceled, check your activity feed to find out if the payment receipt is indicating a cancel option.
Can I Dispute a purchase if You pay Someone Ahead of Time?
You shouldn’t pay someone who you fully don’t know or trust for something they promised to you in the future.
As we already noted, most, if not all, payments are instant and generally can’t be canceled.
Therefore, your pleads to Cash App’s support might fall on deaf ears and even your bank might not be willing to help you.
As a rule of thumb, if a thing sounds too good to be true (such as free cash in exchange for a small payment), it’s probably a scam.
What Should You Do if You Get Scammed on Cash App?
Cash App, the company, recommends that you report a potential scam payment:
- In the top right corner, tap the profile icon
- Tap on “Support”
- Select “Report a Payment Issue”
- Select the payment
- Follow the prompts
Also, if the scam is connected to a potential scam account instead of a specific payment you made of received, you can report and even block the account by doing the following:
- Launch the Cash App
- Choose a Customer Avatar to view their profile or search for it by entering a $Cashtag, Email, Name, or Phone Number
- Tap on ‘Report’ or ‘Block’ at the bottom of the page
- Select one of the possibilities
- Follow the steps
Additionally, we recommend that you contact the Cash support representative at https://cash.app/contact.
What transactions can be disputed?
Transactions with merchants can generally be disputed if you aren’t happy with a product or service you got. Or it wasn’t as expected.
For instance, when a merchant charges you the wrong amount or makes a duplicate transaction. In these kinds of cases, you may file a dispute.
However, you can also dispute fraudulent transactions. So, what is a fraudulent transaction?
A fraudulent transaction is one that you did not partake in. For example, if your account was compromised (hacked in one way or another), or your Cash Card has been lost or stolen.
For that reason, you should regularly review your transactions in order to quickly identify if something is out of the ordinary. When you notice a fraudulent transaction, immediately report your card as lost or stolen and contact Cash App support.
However, when you’re involved in a scam, you’re in most cases, handing the money over voluntarily, and in that case, it might not fall under the fraudulent transaction classification.
Does Cash App Give Away Free Money?
Adding fuel to the fire, i.e., encouraging scammers, Cash App regularly holds sweepstakes on their Twitter and Instagram accounts.
There, Cash App customers can win money if they provide publicly their $cashtag. Tweeting your $cashtag to potentially thousands of people, opens you up to scammers that now know where to send their solicitations by impersonating the Cash App team.
It’s highly recommended not to share your $cashtag, especially in a wild goose chase that is the sweepstake.
Other Similar Scams
There’s no lack of imagination in scammers. They’ve come up with the most creative ways of parting people like you and me of their hard-earned cash.
Craigslist is still one of the main ways of scamming people, as well as various deposit scams.
These include handing over the money as a deposit to secure an apartment, a puppy or kitty from an expected litter, and other examples.
Another popular scam is the so-called romance scam where a person is pretending to be a soldier, engineer, doctor, and similar occupation working overseas.
Here they’ll come up with various reasons why they need an ever-increasing amount of money, while at the same time, they’re schmoozing you in a bid to fall head over heels for them.
They’ll always have a pending surgery lined up, but no money to pay for it. Their grandma might be sick as well, or they need to pay a fine for something. The reasons are endless.
More modern ways of scamming include phishing emails, calls, or texts in a bid to hand over your personal information, money, or credentials.
If there’s one takeaway from this article, it’s to always use your common sense and don’t hastily transfer money to other people in pursuit of easy money.
Utilize the age-old advice and sleep on any significant money decisions, whether they’re big purchases or money transfers.
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.