Member FDICFDIC-Insured - Backed by the full faith and credit of the U.S. Government

Be on Guard for Phone Banking Fraud

Phone banking mobile fraud alert

New technology also unfortunately means new opportunities for fraud. Cash apps, such as Venmo, Facebook Pay, and PayPal are becoming more ubiquitous. Because these apps link directly to your bank or credit card accounts, they have also become a top target for scammers.

Phone banking and cash app infrastructure opens up several new avenues for scammers who understand the technology better than anyone. To keep them at bay and secure your use of your digital wallet, you need to be aware of their methods.


Common Cash App and Phone Banking Scams

Fraudulent payments

You are selling an expensive item, such as a computer, on Craigslist. The scammer offers to pay with their Cash app. You accept the payment and send the item, only to discover later that the transaction was reversed because the seller used a stolen credit card. You are out both the item and your money.

Canceled payments

Another big flaw with Cash apps is that some can take more than a day to process a payment. A scammer can make a payment to you and then cancel it before it hits your account. By the time you realize it, the scammer has gone with the wind.

Protect Yourself Against Cash App Fraud

Your biggest takeaway should be to only use a Cash app to transfer funds with people you know and trust. That is the app’s intended purpose. Finally, because there tends to be a lag in processing payments, keep checking your account to verify the transaction went through and that it is correct.

About This Author


Ross Bentzler

Ross Bentzler is Executive VP and Information Security Officer for Alpine Bank. Ross has worked in the information technology field for two decades, focusing on information security for 13 years.

More about Ross Bentzler

Allpoint It’s your money after all. Find a surcharge-free ATM