Cash App Money Flipping Scam: What It Is and Tips to Avoid
Table of Contents
- By Steven
- Published: May 06, 2024
- Last Updated: May 22, 2024
Cash App is one of the world’s most popular mobile payment platforms, with over 26% of all US adults using its services. The app’s popularity comes from its time-saving convenience; users can manage their entire financial portfolio, from instant peer-to-peer transactions to stock and Bitcoin alterations. However, as a product of Cash App’s growth, the platform has also begun attracting malicious characters.
Every time we connect to the Internet, there is a chance that a cybercriminal could be waiting for us; in the case of Cash App, these unsavory actors are opportunistic, waiting for the chance to manipulate authentic users into sending money and account details in exchange for something they want (i.e., a renter’s agreement or a puppy more on this below). These schemes are “Cash App Flipping scams,” and many myths surround them.
This content uncovers the truth about the most common cash-flipping schemes, including overviews of their manipulative approaches, their associated risks, and how to avoid becoming a victim.
What is Cash App Flipping
Cash App flipping scams come in many forms (such as those listed below); however, the concept has been around longer than the application. “Flipping scams” typically consist of quick money-making schemes, often peddled on social media platforms, from MySpace to Facebook and everywhere in between.
Cash App flipping differs in that it utilizes the app’s convenience. Threat actors might use the application’s instant transaction capabilities to pressure their potential victims into sending money immediately or trick the victim into sharing account information. Depending on the scammer’s chosen method, they can make various promises. Consequently, only by learning about these traps can people understand the threats they may encounter online, their signs, and how to avoid them.
How Does Cash App Flipping Work?
The scammer chooses a target and opens communications with them. Depending on the specific timeline the malicious agent has to achieve their goals, these first communications could be friendly interactions or threatening, suggesting that if the victim does not act immediately, they’ll “lose” something. After the first few messages, the scammer builds rapport, encouraging potential victims to share trust and information.
The scammer makes a promise, agrees to deliver services, or otherwise “hooks” their target. The nuances of this stage differ for every scam, as shown below. Some scammers might ask for an upfront payment, promise guaranteed growth options, provide fake testimonials, or create fictitious “delivery details” of services and purchases.
The scammer takes the information or money from their victim and either disappears or promises more significant rewards if they “commit” to another transaction. Cash App scams involving service or product delivery end after the victim has sent a down payment. Still, scams that involve investments or “flipping” schemes can stick around. After a scammer gets their first payment, they might pressure the victim into sending additional cash to “build returns,” but the victim will never see the money again.
Types of Cash App Flipping
There are some types of cash app flipping, here are them:
Cash Flipping
Myth: “Hey! I just found out about this stock option that’s a sure thing. It helped me double my money in a night! Send me $20, and I’ll use that option to get you $200!”
Fact: Cash-flipping scams promise to double or quadruple a victim’s money by playing the stock market. However, once the victim hands over their cash, they’ll never see it again. Since there are no actual mechanisms for these scammers to grow the money, they lie about the opportunity to entrap authentic users.
Loan Scams
Myth: “I heard you were looking for a way to get some cash. Here’s a loan with a 0% interest rate. Send me a startup fee, and we’ll get the money into your account.”
Fact: Some scammers pose as loan lenders offering options through Cash App. These scams work by convincing victims that they’re getting the best rate using a “personally curated” option, but after they pay the upfront fee, the scammer might disappear. Otherwise, the scammer might continue to speak with the victim, encouraging them to send more money to cover hidden fees or fictitious penalties.
Mistaken or Accidental Payment Received Scam
Myth: “Hey, sorry to bother you; I sent my rent to your Cash App account instead of my landlord’s. Would you mind sending it back to me? Thank you!”
Fact: Some scammers pose as victims of circumstance, claiming that they made an accidental payment to the wrong account—oh, and the reason you can’t see it is because it wasn’t processed yet. In reality, there was no accident, and if a person “refunds” this fictitious payment, they’re sending their money to a bad actor. If this were an accident, the user would go through the Cash App to refund the money, not speak with you.
Rental Deposit Scams
Myth: “Are you still interested in staying in my rental? The person who was going to fell through—send me a deposit, and the house is yours. Let me know!”
Fact: Although real estate schemes rarely succeed, when they do, they can be detrimental to young couples and people with limited funds. Moreover, online housing and rental websites like Red Fin and Zillow can perpetuate these scams. Scammers can list houses for rent and gather the contact information of people interested in staying there—and after they collect a deposit, they disappear, leaving the victim with a rental agreement that doesn’t exist.
Investment Scams
Myth: “Tired of working 20+ hours a week? Invest with me, and I can triple your income in two weeks! You must act now, though, because the market can change instantly.”
Fact: While the stock market changes, profits are not guaranteed when a person enters it. These investments are always fraudulent—and their tell-tale sign is the guarantee of growth; without the promise of increased funds, a potential victim would have no reason to send them money, so when scammers add the promise of gains, victims are manipulated by the appeal of a quick solution to make more money.
Fake Pet Deposit Scams
Myth: “I saw you were looking for a new addition to your home. My dog just had puppies, and we can’t keep all of them. We’re selling them for $1,000. Send me a deposit to get one!”
Fact: Unless you see the animal in real life or personally know the breeder, assume these communications are scams. These schemes play on the popularity of designer and specialty breeds to manipulate a victim into giving a deposit to obtain a pet. Some scammers might have an animal and use pictures of them to entice potential victims, while others might appeal to a victim’s emotions, begging for assistance with things like vet bills.
Data Breach Scams
Myth: “Did you see the recent data breach? No one is safe! Send me your account details and I’ll secure it for you. If you don’t secure it, it’s only a matter of time until your money is stolen.”
Fact: Data leaks happen all the time, and when they occur, incidents happen, they can cause massive issues in the lives of their victims. Scammers can manipulate these natural fears by convincing their victims that nowhere online is safe—but for a fee and some data, you can have all the protection you’d ever need. In reality, once the scammer has the credentials they want, they can take over your account, steal money, and cause huge personal and financial losses.
Social Security Scams
Myth: “Hello, we’ve detected an issue with your Social Security. Please transfer $50 to us to verify that you own this number. Failure to do so within 24 hours will result in legal consequences.”
Fact: There is nothing “wrong” with your Social Security information; if there were, the overseeing officials would send a letter detailing the issues. Anyone claiming to have information about your Social Security account status or number is a scammer and must be reported as soon as possible. Continued interactions with them may result in financial losses, emotional manipulation, and identity theft.
Customer Support Scams
Myth: “Hi, I’m from Cash App support. I heard you were having some trouble with the application. Can you send me your login credentials so I can see what’s going on?”
Fact: Much like smishing, these scammers are looking for account entry information. They pose as customer service representatives and convince potential victims they are trustworthy and authentic support providers. In reality, these scammers obtain account credentials and disappear—only to reappear when an account’s funds are stolen. Never share information about your Cash App account with anyone, especially those who should already know the details.
Can Someone Hack Your Cash App?
As demonstrated above, Cash App flipping scams have various risks, including potential account hacking, identity fraud, and financial losses. These schemes can compromise a Cash App account, especially when victims share personal information and interact with infected, malicious links or attachments.
The good news is that Cash App works to offset these risks. As long as the account is not in the hands of a criminal (i.e., they don’t have login credentials or access to your phone and email), users can remove the threat from the account by changing the password. However, even if a threat did obtain access to a user’s account, Cash App has secondary security features that would restrict their access, rendering their scheme a dead end.
- Enable PIN and sign-in protections: with these features activated, even if a malicious actor accesses the account, they can’t get very far—let alone move money. Users should also be cautious of duplicating credentials between online accounts; as more data breaches appear, the more likely duplicate passwords will be exposed.
- Enable biometric lock settings: Cash App offers security gates that require fingerprint readers and facial recognition, which renders security risks useless without your biometric signatures.
- Fraud monitoring and notifications: enable the Cash App’s communications on your phone to be alerted to any account activity. The app will cancel transactions if they seem fraudulent, but the protection is limited, so staying up to date on the account activity is necessary.
Tips to Protect Yourself from Cash App Flipping Scams
To stay safe, it's important to follow this tips to protect yourself:
Never send money to someone promising to flip your money.
There are three ways to obtain money: work for it, be given it, or gamble for it. Those who promise and guarantee quick, high investment returns or other monetary ventures are scammers. They will never return a victim’s money, let alone magnify it and return it. Anyone who promises to maximize another person’s money through “flipping” cannot be trusted—and should be reported to the Cash App immediately.
Verify the authenticity of any investment or money-making opportunity.
If the opportunity someone offers is real, they should provide proof. Job opportunities should always link back to real websites with verifiable stakeholders and employees (thanks, LinkedIn!), and users should verify investments with Broker Check before any funds get sent. It’s also important to note that some scammers may claim authenticity through providing fictitious testimonials, or by providing their own link to verifying websites (including spoofed versions of Broker Check).
Utilizing Cash App’s security features to protect your account.
Cash App’s main security features are login credentials and (presumably) limited physical access to a user’s phone, primarily because they are in our hands most of the time. However, if your phone is stolen, your password is exposed in a data breach, stolen or guessed, or a threat actor enters your home network, your account could be in trouble. Enabling multi-factor authentication, PIN codes, biometric signatures, notifications, and fraud monitoring—aren’t suggestions; they are vital defenses to protect your account and your money.
Reporting suspicious activities to Cash App and law enforcement agencies.
Contact Cash App’s support immediately if you’ve been scammed or recognize a potential threat. You can make a report online using a form or call their representatives. Cash App’s Support team answers calls daily, from 9:00 AM to 7:00 PM ET—their number is 1-(800)-969-1940. Additionally, some victims may benefit from reporting the scammer to their bank, financial institution, authorities, and the FTC.
Report a scammer on Cash App by:
- Tapping the payment you suspect was fraudulent.
- Select the “…” in the top right corner of the app.
- Select “Report an issue” from the menu that appears.
- Select “I was scammed” and fill in the details as applicable.
Cash App is a highly convenient way to manage and move money, but with convenience and popularity comes opportunistic actors. Fraudsters are everywhere, peddling get-rich-quick schemes, fake product and purchasing opportunities, and creating scams that play into our fears. Cash App flipping scams are more prevalent than ever on the platform, but knowing what they look like, utilizing skepticism and its security features, and remaining vigilant of these threats can mitigate and stop most scams before they start.
