Editor’s Note: In January 2025, the Consumer Financial Protection Bureau (CFPB) ordered Block, the operator of the peer-to-peer payments app Cash App, to refund and pay other redress to consumers up to $120 million and pay a penalty of $55 million into the CFPB’s victims relief fund. The CFPB cited that Block employed weak security protocols for Cash App and put its users at risk. Cash App has released its official response to the settlement.

With more than a quarter-trillion dollars in reported cash inflows in 2024, Cash App stands right alongside other major digital wallets in the marketplace today. Yet it’s more than just a digital wallet.

Cash App works like many other “peer-to-peer” payment apps like Venmo. However, it goes beyond payments. It also offers options for investing money in stock, buying and selling Bitcoin, free tax filing, and a savings account. It further features the option to connect a debit card to the app, which is currently issued by Sutton Bank.

Note that Cash App is a financial platform, not a bank. And like any financial platform, the funds you keep in it aren’t automatically protected by the Federal Deposit Insurance Corporation (FDIC). You can protect them with FDIC coverage by keeping a Cash App debit card or through a sponsored account, which is an account for a child aged 13 to 17, legally owned by an adult.

Of course with more than a quarter-trillion dollars moving through the app, you’ll certainly find scammers working their way into the mix. Some look like other digital wallet scams, and others have their own twist because of the way Cash App works.

Types of Cash App scams

From fake customer support scams and fraudulent payment requests to phishing links and money-flipping schemes, scammers use various tactics to steal money and personal information from unsuspecting users. Here’s a guide that will walk you through the types of Cash App scams and provide tips on how to protect yourself from them.

“Money flipping” scams

These scams run rampant on social media, where a fake account promises big returns on money that victims put down through a secret technique that guarantees results. The scam starts out slowly as the scammer looks to build “trust” with the victim. The money requests start small, maybe $10 to $50 that the scammer then “invests.” A few days later, the scammer sends the victim a real return of maybe 2x or 4x the original amount. This might go on for a few more rounds of returns, before the one final request — sometimes for hundreds or thousands of dollars, which the scammer finally disappears with, never to be heard from again.

Deposit scams

Looking for a pet, an apartment, or maybe even a used car online? Scammers take advantage of that with Cash App too. Basically, this scam riffs on phony classified listing scams, where they announce something for sale or rent and offer to “hold” it for the victim until they can make a full payment or sign a lease. As it turns out, there’s no pet, apartment, or car. The scammer pockets the phony deposit and disappears.

Sweepstakes, survey, and giveaway scams

Another glut of Cash App scams you’ll find on social media involves phony sweepstakes, surveys, and giveaways. While they take slightly different forms, the essence of the scam remains the same. The scammer promises prize money, compensation, or heavily discounted goods in return for a “handling fee” or “verification fee” of some kind. Once victims hand over that “fee” through Cash App, that money is gone for good.

Accidental payment scams

Here, scammers flood a long list of Cash App users with a message that claims the scammer sent them money by mistake and that they want it back — all in the hope that a few users will take the bait. In other cases, scammers will actually send money, usually with a stolen card. They’ll demand payment, which the user sends, and then the scammer cancels the initial “accidental” payment and leaves the user at a loss.

Account and customer support scams

Just like scammers who pose as banks, credit card companies, and other financial institutions, these scammers masquerade as Cash App employees. They alert users of unusual account activity or make the threat that their account might get shut down. The scammers inject an urgent tone into the message so that victims act quickly — which usually involves handing over account info, PINs, and other personal info.

Avoiding Cash App scams

Cash App offers quick and convenient money transfers, but its popularity has also made it a target for scammers. Knowing how these scams work is the first step in protecting your account and keeping your money safe. Here are some tips you can apply to combat Cash App scams:

Only send money to friends and family you know and trust

That’s first and foremost.

Sync the app with your contacts

This will block strangers from asking for money. Along with that, never accept money from strangers. It could be an accidental payment scam or involve money laundering, which makes you an accomplice to a crime. Report any activity like this to Cash App.

Take advantage of Cash App’s security features

By locking your app with your fingerprint, face, or PIN, so money can only be sent when the app is unlocked. Also set up notifications so that you get real-time alerts for activity on your account and new device logins.

Always use Cash App to issue a refund

If the money was truly sent to your Cash App by mistake, you can return that same money to the sender from the app. Never send a new payment from your personal bank accounts. If you receive a suspicious payment, have the other party cancel it. If they won’t, it’s probably a scam.Report it to Cash App.

Protect your personal info

Never share your Cash App PIN or any other personal info with others. Cash App makes it very clear, “Remember that we’ll never ask for sensitive information, like your PIN or login code by phone, email, or text.”

More ways you can protect yourself and your money

Our online protection software offers additional layers of security for your online safety and finances, including web protection and scam protection that can block harmful links that might lead you to malware or a phishing sites — such as a phony link designed to steal your login credentials. Our also software protects you by locking your identity online.

Transaction monitoring and credit monitoring will also recognize any dubious financial activity. If identity theft unfortunately happens, we will offer up to $2 million in ID theft coverage and restoration to support you in recovery efforts.