Is Cash App a Scam?

Cash App is a legitimate peer-to-peer payment service owned by Block, Inc. (formerly Square), a publicly-traded company (NYSE: SQ). The app allows users to send, receive, save, and invest money. **Why Cash App is Legitimate:** • Owned by Block, Inc. (NYSE: SQ), a public company • Uses encryption and standard security measures • Offers PIN, biometric ID, and two-factor authentication • Regulated as a financial services company • Real customer support (though difficult to access) **Why Cash App is a Scam Magnet:** In January 2025, the Consumer Financial Protection Bureau (CFPB) ordered Block, Inc. to pay up to $175 million: • $120 million to compensate consumers harmed by fraud • $55 million civil penalty • Reason: "Created the conditions for fraud to proliferate" and failed to properly investigate unauthorized transactions **Why Scammers Love Cash App:** • Instant, nearly irreversible transactions • Minimal buyer protection compared to PayPal • Easy anonymous account creation • No automatic fraud protection on personal payments • Cash App balance is generally NOT FDIC insured like a bank account **Common Cash App Scams:** 1. **Cash Flipping/Money Flipping** - "Send $50, get $500 back" - pure theft 2. **Fake Customer Support** - Scammers pose as Cash App support to steal login credentials 3. **Fake Giveaways** - Impersonating Cash App or celebrities promising free money 4. **Accidental Payment Scam** - Scammer sends money, asks for it back, then reverses original 5. **Romance Scams** - Requesting Cash App payments for fake relationships 6. **Phishing** - Fake emails/texts claiming account issues The FTC reported Americans lost $118.1 million to scams on P2P apps like Cash App in just the first three months of 2025—a 61% increase from the same period the year prior.