Published: October 24, 2023 on our newsletter Security Fraud News & Alerts Newsletter.
Peer-to-peer payment (P2P) systems have exploded in popularity, with more than 113 million users estimated in the U.S. alone. With the number of P2P users growing, Cash App, the highly popular P2P platform for sending and receiving money on your smartphone, has the attention of hackers. Scammers are using a “flip scam” to steal Cash App user funds. If you use this app or are considering it, knowing how to spot this scam is as good as money in the bank – or Cash App!
The Cash App flip scam is fraud pure and simple. Scammers are taking to social media, posting promises of turning funds into big returns as they’ve done for other Cash App users. They also like targeting fans of legitimate Cash App giveaways, believing they may be more susceptible to different flipping scams. A scammer might offer a Cash App giveaway and money flipping together.
The idea of giving money to a stranger to get a big return should be the first clue a scam is in play. Sending a scammer money for a quick profit usually ends with never hearing from them again. Should you get a scammer who pays you the promised return, you can be sure they’re after a larger “investment” of your money next. It’s one of many ways scammers get you to trust them, but what you can trust is once they get more of your cash, they’ll be gone with the wind.
Like other scams, Cash App cyber-creeps also use social engineering tactics like direct messaging. A flip scammer might try to convince you they are Cash App customer service or another expert who knows how to get you more back from your transaction.
Remember that if something sounds too good to be true, it very probably is. And if you do use products like CashApp, PayPal, or Venmo, transfer any payments back into your bank account right away. Funds stored in those accounts are not as safe as keeping them in your financial institution where you have some protections.
Since flips scams can vary from one hacker to another, remember that sending a stranger money is never a move that pays off, no matter what you’re promised in return. Knowing how Cash App flip scams and flippers work can keep them from scamming your account next.
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