MoneyDon't Waste Your Money


Be careful with transfer apps so you don't waste your money

Posted at 7:55 PM, Oct 05, 2020
and last updated 2020-10-06 00:29:45-04

Money transfer apps are rapidly replacing checking accounts these days.

Especially for people who don't want to handle cash during this pandemic.

But there’s one big risk with these apps, so you don’t waste your money.

Many people are dumping their bank accounts for money transfer apps on their phones.

Unfortunately, as one woman just learned, these apps are easy targets for scammers.

Corinthia -- who asked that we not use her last name -- just saw her monthly rent money and more disappear in a flash.

It happened when a scammer got access to her "cash app" account.

"It began with an email, and it said $499 would be withdrawn from my account," she said.

Worried, she called the phone number in the email, and got a friendly phone agent.

"He told me download this app so he could look into my account and see what happened."

But the friendly agent was not really with cash app.

As soon as she opened up the cash app for him to see it, he transferred $1,600 to someone in Canada.

"$4 is what's left in my cash app account now," she said.

With so many of these scams, it turned out the victim called the scammer, thinking they were with cash app.

They then give the person their account number, or let them remotely take control of their phone.

Earlier this summer, Mark Fisher googled cash app customer service, called and had his account drained by a scammer.

"And then I got hung up on, $3,400 missing."

It happened in a second!

Cash app now states on its website:

"Please note that there are currently no phone numbers that you can call to speak with Cash Support. No one representing Cash App will ever ask for your sign-in code."

We contacted cash on the chance they can help Corinthia recover her money.

"That's a month's pay,” she said. “$1,600? That's a month's pay for me!"

Remember, money transfer apps like cash are convenient, but don’t have FDIC insurance or bank protections.

So be careful so you don’t waste your money.