What to Watch Out For Using the Cash App
As the dollar bill has become extinct among many a purse and wallet, applications such as Cash App, Venmo, PayPal, and Zelle (peer to peer P2P payment apps) are becoming an increasingly popular alternative. So is this safe? Years ago, many of us were afraid to put any banking information online, however, the convenience of such an app has convinced the most aggressive dissenter to change their mind. Nothing is truly safe anymore, but we can use some best practices to keep our eyes out for fraud within these platforms.
Recently, a male in Florida reported that over $100.00 had been removed from his bank account via the Cash App (owned by Square) which he advised he never used. He immediately requested a hold be placed on his account (smart!) and found that 8 separate transactions of $20.00 had been removed from his bank account tied to this app. Another Cash App user advised that his PII (personal identifying information) was stolen from a data breach at a doctor’s office and thieves obtained his name, social security address, and former address. He then received a letter in the mail with the Cash App debit card with his name and an account number. Typically, many fraudulent peer to peer payment accounts are created from data breaches which the victim may not even realize has occurred. Sometimes, all the thief needs to get the money is a cell phone number or email address. Increasingly, sellers on online marketplaces require buyers to use these P2P payment systems to sell event tickets, electronics, puppies, etc. This is bad practice as these apps should only be used for people you trust.
INFORMATION NEEDED BY LAW ENFORCEMENT AND BANK FRAUD DEPARTMENT
If a fraud occurs, make sure to obtain the user name tied to the app which is what the law enforcement officer will need. Keep in the mind that many times a name (such as John Smith) will be linked to the app account, but the actual user name for the account will have no spaces in the name such as ($heyyyyyyyyyy79). This is called the “cash tag” and will begin with a dollar sign. This is the correct user name that will be helpful to law enforcement.
Typically a phone number will also be linked to this application as well as an address. Most likely this will be a spoof number but maybe helpful to the investigation. Make sure to obtain all the transaction information including dates, amounts, etc. from your bank as officers will need this for the report.
BEST PRACTICES FOR CASH APP USERS
If you use the Cash App, make sure you have your push notifications turned on so you will be made aware of any transactions made. This app also allows users to turn on facial recognition and create a PIN (personal identification number) so that all transactions are made with their authorization. Also, set incoming requests to be “contacts only” and only send and receive money from people you know and trust.
The Cash App allows you to link a credit card, debit card, Bitcoin, or a bank account to it. Best practice would be to add a credit card so that it would easier to replace than a debit card or bank account number. Cash App also allows users to receive a “Cash card” and upload that money into the application so that a user would not even need to link an account.
P.S. Within the app, you can choose support and then “recognize and report scams”. The phone number for the Cash App is 1-855-700-6000. Cash App uses Lincoln Savings Bank and the Cash Card uses Sutton Bank which may also be locations you wish to contact.
