What Do Payment App Scams Look Like?

Mobile payment app scams arise in different forms and are becoming increasingly sophisticated. One form of the scam involves fraudsters hijacking the victim’s linked checking account or credit card through the payment app and using it to pay for their own purchases. Other mobile payment app scams are in the form of bogus Twitter or other social media contests.

In these contest scams, a payment app user participates in a seemingly real contest on Twitter or another social media platform. The contest host is giving away a bundle of cash to one lucky winner. After entering the contest, the victim receives a message informing them they’ve won the giveaway — but they need to pay a small fee to verify themselves and receive their cash prize. The victim pays the fee and waits for their big payday. It never lands in their account, and they won’t see the funds they used to pay the “fee” ever again.

In some cases, the victim has not entered any contests, but receives a message appearing to be sent directly from the payment app informing them they’ve won a cash prize — with a small processing fee attached.

The scam can be pulled off through any payment app, but most commonly targets Cash App users. Likewise, the scam can be executed through several social media platforms, but is most commonly found on Twitter.

How to Spot the Red Flags

Protect yourself from these scams by learning to recognize the red flags. Here’s what you need to know about Cash App and similar payment apps:

• Cash App and Venmo will never ask customers to send them money as a “processing fee” or for “verification.”
• Payment apps will not ask users to share their PIN or sign-in code outside the app.
• Cash App currently has only two official Twitter accounts, @cashapp and @cashsupport, and both have blue, verified check marks. If you get a tweet from another account appearing to be from the app, it is likely bogus.

If a post or tweet looks suspicious, don’t take any chances; ignore it and move on.

If you believe you have fallen victim to a mobile payment app scam, contact the app’s support through the app or website; they may be able to reverse the transaction. You should also report it to the FTC and warn your friends about the circulating scam.

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