Transferring funds and receiving them instantly with a single click of a button has never been this easy. Digital financial services such as Cash App, PayPal, and Venmo have made conventional banking almost obsolete.
What is Cash App?
Cash App is a P2P mobile payment service that’s an alternative to conventional banking. The app is developed by Square, Inc. and enables users to transfer and receive money on the app instantly. Splitting the bill with friends has never been this easy.
Since its release in 2013, the app has over 36 million active users in the US and the UK. In January 2018, Cash App introduced Bitcoin trading via the app, giving a significant boost and acceptance within the crypto community.
How Does Cash App Work?
Setting up an account with Cash App is quick and easy. Head over to your smartphones’ App Store or Play Store and download the Cash App application. Create an account, and link a payment method, such as a credit card, debit card, or bank account.
Once logged in, users can make the most of interesting features: they can trade stocks, crypto, and digital currencies. Apart from that, users get a weekly cash giveaway and a complimentary debit card that links with their Cash App account. The Cash App debit card can be used to withdraw cash directly through an ATM.
Transferring funds is a straightforward process. You just have to know the recipient’s username. Select a recipient, an amount, and tap “pay.” The funds will be instantly transferred from either your Cash App balance or your linked payment method.
If you’re going to use Cash App for Bitcoin trading, you will need to verify your identity. You can do this by uploading an ID that has your photo. Cash App’s competitors require a photo ID even for the basic features such as transferring funds to another user.
Is Cash App Secure?
By using Cash App, you’re essentially trusting the application with your private information. It’s natural to have concerns about whether Cash App is safe. Fortunately for users, Cash App takes the security of its app and users seriously.
Cash App is packed with numerous security features that keep a user’s account private and their funds in the account safe. Cash App uses state-of-the-art encryption and fraud protection systems in place to prevent any breaches. Security features include:
- PIN codes
- Biometrics (Touch ID or Face ID)
- Instant email and text notifications regarding any account activity.
In case there has been a breach, or you notice suspicious activity on your account, you have the option to disable or delete your account. By doing so, Cash App temporarily freezes your account so that your funds in the app and the linked payment method aren’t misused.
There’s only much that online services can do to protect a user’s account. The security of users’ online accounts comes down to the user themselves. With ever-increasing online breaches and cybercriminals always targeting the next victim, it’s essential to practice safe internet habits.
Is Cash App Safe to Use?
Cash App is safe to use as long as you’re mindful of your internet habits and practice safety precautions. The security features integrated into the app and account security on the user end keep the funds secure.
Like any other payment application, Cash App is also susceptible to hacks, scams, and fraud.
Scams and Frauds on Cash App
With millions of users making transactions daily, it attracts scammers and fraudsters. Cash App isn’t a foolproof application, and its few vulnerabilities in the past have been aggressively targeted. Here are some of the reported scams on Cash App:
Customer Service Scams
Scammers always develop clever ways to get users to give up their account information, such as the login email address and password. They usually send out emails containing customer service phone numbers and pretending to represent Cash App.
If a Cash App user faces an issue, they call the number where a bogus representative convinces them to give up their account credentials.
Cash App Friday Sweepstakes
Cash App is a user-centric application that hosts weekly prizes as part of its promotional activities. However, fraudsters randomly call Cash App users claiming that they’ve won a prize, and to redeem the prize, they must provide their login information.
While some users might not fall for this, some users end up believing the call is authentic. They might get excited about winning the prize and not realize that the call may be fake if the company is asking for such personal information.
Cash App Flipping
This is very common among payment applications where the scammer calls a Cash App user and convinces them to invest a partial amount from their Cash App balance or the linked payment method for a quick profit.
The naïve user ends up falling for the scam, and the scammer gives the user details of the account where the funds need to be transferred. Once the transfer is made, the scammer takes the money and blocks the user from calling them.
An individual could pretend to be interested in you and go out with you for money. They might be aware that you have a lot of money or at least a decent amount of funds in your Cash App account that the individual could obtain by scheming to like you.
They might create a scenario where the Cash App users transfer funds to the individual they might never see again.
Such scams are common among Cash App users because users don’t need to provide any proof of their identity unless they’re linking their account for Bitcoin trading. Also, most young people who use the app don’t put too much thought into their online privacy and security.
Advantages and Disadvantages of Cash App
Here are the advantages and disadvantages of using Cash App:
|Cash App is similar to a bank account||Your Cash App wallet is vulnerable|
|Option to sign up for a Cash App debit card||FDIC doesn’t insure your Cash App funds|
|No fees for making payments via debit card||You don’t earn interest on your funds|
|Ability to trade cryptocurrencies via the app||3% fee on transactions via a credit card|
|Secured with robust encryption||Limits on withdrawal amount from ATM|
What Users Don’t Know About Cash App
You can’t dispute transactions as any transfers made through Cash App are non-reversible. If a user makes a payment to the wrong recipient, they can use the ‘request’ function to ask the recipient for a refund. However, it’s up to the recipient to make the refund.
Cash App doesn’t offer phone support but offers in-app customer support where users can dispute any charges made by the app.
In a Nutshell
Many businesses don’t accept payments via Cash App as traceability of transactions and individuals is rather difficult via the app. Merchants are encouraged to accept traditional payment methods to avoid disputes over charges incurred and chargebacks.
Cash App has become an everyday app for millions of users in the US and the UK. However, it’s insecure to use the app as it doesn’t require identity verification, making it extremely risky for large transactions.
Before using Cash App, users must educate themselves on the growing scams within the app and make transactions with people they know and trust.