Mobile payment or money transfer apps are a convenient way to send and receive money.
As they are increasing in popularity, more scams are happening. Here is information on common scams and how to avoid them.
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How do mobile payment apps work?
Venmo, Cash App, and PayPal are all mobile payment apps. They allow you to send and receive money through your smartphone, or online. After downloading the app and creating an account you will have to select a payment method or source of funds. This can be a bank account, debit card, or credit card.
Once the account has been set up you will be able to send and receive money. However, when someone sends money, it does not go directly into your bank account. The money gets added to your balance on the app. The money can sit there for later use or you can transfer it into your bank account.
Common scams
Right now there are a few scams circulating on CashApp:
- CashApp flipping- look out for direct messages from users offering to help you turn a small sum of cash into larger amounts by “flipping” and then leaving with the money.
- Fraudulent payment claims- watch for messages claiming you are entitled to a payment but must send a smaller amount first to claim– you will not receive funds back.
- Pet sales- this scam became very popular during the pandemic. Scammers charge would-be pet owners for an animal that doesn’t exist. Typically, they offer pets at unusually low rates and insist that they…
