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
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.
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.
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Alpine Bank Staff
Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.
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