Although using Cash App is a convenient way to receive money from people you already know, Cash App is not safe when receiving money from strangers. Whenever you use a payment app like Cash App, it’s always better to receive money from people you trust to avoid being scammed by a stranger. Other payment apps besides Cash App include PayPal, Venmo, Zelle, Apple Pay and Chime, among others.
However, Cash App is different from its competitors because its $Cashtag feature allows its users to send and receive money without using a bank account number. When a Cash App user registers for an account, the $Cashtag allows them to complete transactions with no additional fees.
Just because using Cash App is easy does not mean it is always a safe method to send or receive money from strangers. Keep reading to learn more about how you can use Cash App safely and the consequences of falling for scams.
Is Cash App safe?
Cash App is only safe to send and receive money with people you already know because you can trust their intentions. While it may not be safe to use with strangers, Cash App is still a safe app to transfer money with trusted contacts for other reasons:
- Cash App uses encryption and fraud detection technology to keep your data and money safe
- Cash App follows many safety standards to detect suspicious activity or transactions
- Cash App is Payment Card Industry Data Security Standard (PCI-DSS) compliant, which means it follows requirements to protect credit card data and transactions
The risks of receiving money from strangers through Cash App
When you use Cash App to complete a transaction, you should be aware of the potential dangers of receiving money from strangers. Here is what to look out for.
The stranger may never actually send the money
In some instances, the stranger who is supposed to send you money may not even send it to you. This can be especially risky if you are only completing the transaction online, whereas being face-to-face with the stranger could give you a better chance to determine their credibility. For example, if you are selling a piece of furniture to a stranger, shipping the furniture item to them before receiving your payment could result in you losing money. Meeting up with someone in person for the transaction allows you to receive the money from a stranger after they have confirmed that your item is legitimate. However, when meeting up with a stranger, ensure that you’ve received the payment before handing over the item you’re selling.
The stranger can overpay you and request the money back
A common Cash App scam occurs when a stranger sends you more money than you asked for. When this happens, the stranger will ask you to send the difference back to them. If you return the stranger’s money to them, you could actually risk losing your own money. For example, imagine a stranger uses a stolen credit or debit card to send you money. If they asked for that money “back,” you would be sending them money that isn’t really theirs. Once the person whose stolen card is being used disputes the charges after you “return” money to the stranger, that money will also be deducted from your account.
The stranger could say they never received the item
If you are selling something to a stranger through an online marketplace like Facebook and have even given them the item they asked for, the stranger could still claim that they never received the item. This could lead to the stranger asking for a refund, so you would not only lose out on the item you sold but you would also not receive the money from that transaction.
What to do if you receive a random Cash App payment from a stranger
If you receive money from a stranger that you weren’t expecting, there are a few things you can and should do:
1. Don’t accept the payment
Cash App allows you to accept or decline payments. If you receive a payment from a stranger that you weren’t expecting, don’t accept it. Although it may seem like a stroke of luck to receive a random payment from someone you don’t know, remember that it is most likely a scam if it’s too good to be true.
2. Do not send the money that you receive back to the stranger
If you already accepted the payment from the stranger, they may claim that they accidentally sent you that money and ask for it back. Refrain from returning the money that you receive back because you could actually end up losing your money by interacting with them. The money that you would send back to the stranger really comes from your funds.
3. Reach out to Cash App to tell them about your situation
If you ever feel unsafe or uncomfortable when in a transaction with a stranger, contact Cash App to inform them about what is happening before you send or accept any money. By involving Cash App immediately, you have a better chance of intercepting potential scams. On the Cash App Support page, you can browse popular questions or contact Cash App directly over chat or phone.
Tips to stay safe when using Cash App
Despite the potential risks of using Cash App with strangers, following these tips can make you safer.
Secure your account with a strong and unique password
The best thing you can do on any account, especially on one dealing with financial information, is to ensure your password is strong. Your Cash App account can be well secured by using a password with at least 16 characters containing a combination of uppercase and lowercase letters, numbers and symbols. When creating a strong password, make sure not to use common dictionary words, phrases or any personal information (children’s names, birthdates, etc.). It can be difficult to come up with a unique password, so we highly recommend using a password or passphrase generator.
Only send and receive money from people you know
As previously mentioned, using Cash App is a safe method of transferring money when you know and trust the person with whom you are transacting. Make sure that you avoid sending and receiving money to and from strangers, as they might be scammers.
Enable verification on your Cash App account
Cash App has a feature called Security Lock which allows you to require a passcode, Touch ID or Face ID for every payment. If you go to your profile on your Cash App home screen, go into the Privacy & Security section and toggle on the Security Lock. Once you enter a PIN or set up Touch ID or Face ID, your account will be more secure.
Turn on your Cash App notifications
You can receive a text message or email after every Cash App payment by enabling notifications through your Cash App settings. This will inform you immediately of any suspicious activity on your Cash App account like transactions you didn’t authorize. If your account has been compromised, having notifications turned on will alert you of any suspicious activity.
Make sure you send money to the correct person
If you have never sent money to someone before on Cash App, you can confirm that you are sending it to the correct person by only sending them a dollar. Assuming that the person you intend to send money to receives the dollar, you can safely send the rest. It is very important to verify the receiver’s identity, especially before sending a large sum of money, because you would be unlikely to get that money back from a stranger if it was an accident. As mentioned before, Cash App is a very safe way to send money to people who you know; so make sure you have the receiver’s correct Cash App display name.
Enable your privacy settings on Cash App
You can make your Cash App account more secure by editing who can send you requests. By going into your Privacy & Security settings on your Cash App, you can toggle Incoming Requests on and only allow people within your contacts to request money from you. Limiting the number of people who could request money from you also limits the possibility of being scammed by someone you don’t know.
Avoid falling victim to Cash App scams
While you can feel safe receiving money from people you know when using Cash App, you should be aware of the potential scams that could happen on Cash App when receiving money from strangers. To avoid becoming a victim of these scams, check the privacy settings on your Cash App account, message Cash App immediately if you encounter a suspicious situation and use a strong password for your account. You can store your login credentials for important accounts like Cash App safely when you use a password manager like Keeper®.
Start a free 30-day trial of Keeper Password Manager to see how securely storing your login credentials can keep you and your money safer.
