3 Tips to Avoid Cash App Scams

Cash apps such as PayPal, Venmo, and CashApp have certainly changed the way we go about transferring funds and splitting tabs. With a few simple taps on a smartphone, you can send a seemingly infinite amount of money to practically anyone, anywhere on the globe.

While these apps make for incredibly convenient payment transactions, they also make users vulnerable to scams, hackers, and fraud. Think: the easier it is for you to access your money, the easier it may be for someone you don’t want in your bank account to slip through the cracks.

This is not to say that you shouldn’t be using these cash apps. In fact, there are many benefits to using them beyond the obvious convenience factors, especially in the COVID-19 era. For example, a survey by SimpleTexting found that 81% of people are using cash apps more amidst the pandemic to facilitate contactless transactions and/or send money to someone in need.

Nearly half of people surveyed say they’ve been targeted by a scam on Venmo or other cash apps. CNBC reports that with the uptick in cash app usage during the pandemic, there has been a matching rise in cash app scams putting many consumers at risk in these already turbulent times.

So what can you do to take back control? Keep reading to learn about the things you can do to keep your money safe while using cash apps.

Tighten up your privacy settings

61% of people have their Venmo transactions set to private - meaning that the other 39% have accounts on a public setting for the world to see. To some, this may be a harmless way of keeping your friends and family up to date on your activity. However, cash apps are not a form of social media, nor should they be viewed as one. Public profiles can be viewed by anyone with an account - which gives hackers an inside look at exactly where and when people are making payments.

Additionally, consider setting up a form of multi-factor authentication. This means that you’ll have to manually approve each sign-in on a new device, typically via a unique code texted to your phone. Once a device is approved, you can opt to ‘remember that device’ so you don’t have to re-approve each time you log in, or you can keep multi-factor authentication for every future login for an additional layer of security.

Double (and triple) check the sender or receiver before hitting send

It may sound like a no-brainer, but sometimes money mishaps on cash apps are the result of user error. Before you complete a transaction, you should take the extra steps to ensure the money you are sending or requesting is going to the right place. Don’t rely solely on the user name or profile picture. Despite identity checks performed by the platforms, hackers may be able to impersonate people that may look like your family and friends. Avoid this by checking directly with the individual that the username is correct.

Don’t fill or request transactions from strangers

This is another one that may sound obvious, but can often catch the unknowing off-guard. With 47% of people saying they’ve received a money request from strangers, it’s something worth talking about. Cash apps requests may be disguised as trusted business or customer service accounts. Best practices include never interacting with someone you’re not expecting to via cash apps - even if the account looks like someone you should be able to trust.

Ultimately, cash apps are an incredibly useful tool to quickly get money from point A to point B without having to take a trip to a bank account. However, proceed with caution. Be careful of who gets access to your account so you don’t become the next victim of a scam.