Protect Yourself Against Money Fraud Schemes

There is a dramatic increase in the number of people being scammed while using the Cash App money transfer service and Redstone Federal Credit Union® advises its members to only send money to people they know.

Cash App is a popular way to quickly send and receive money, with more than 30 million active users. It’s quick and easy with few consumer safeguards. That makes it easy prey for scammers.

Jonathan Kirby, Redstone’s Vice President of Security and Investigations, said scammers are targeting Cash App and other peer-to-peer money transfer services because they are fast and it is nearly impossible for victims to recover their money.

"Typically, when they send the money, there is very little recourse we have in getting the money back,’’ said Kirby. Cash App also emphasizes to its customers that payments are instant and usually can’t be canceled.

There is never a good time to get scammed out of your money. However, with an ongoing pandemic that has caused many people to lose their jobs, having your money stolen now can be devastating to some.

Kirby has held media interviews to try and let people know how to spot signs of a scam and protect their money.

Fake Cash App customer service numbers are luring in callers who have a question about their Cash App account. People often find these phony numbers when searching online for a customer support phone number. Instead of getting answers, they get their account emptied. Scammers ask for the caller’s Cash App account and log-in information under the guise of fixing the problem. In a matter of minutes, money is transferred out of their credit union or bank account.

Currently, there are no phone numbers that you can call to speak directly with Cash App Support.

Another popular scam involves a person attempting to pay a deposit for an item, or purchase tickets or a product from an individual online. Once they send the money, the scammers block the account and the money is gone.

Take these steps to protect yourself:

Know Who You Are Sending Money To

• Kirby said some victims thought they were buying items from strangers through CASH APP, but the items never arrived. Once that money is sent, it is likely gone forever.
• Others have been victimized by individuals they met online through social media or a dating website. Please avoid sending money to anyone you may have met online.
• Verify and double-check all recipient information before sending any payment to confirm you are sending money to the correct person

Don’t Pay to Play

• Never wire funds or purchase gift cards as a result of a call or email request from someone claiming you owe money or you have been selected the winner of a sweepstakes. Funds that are wired out or sent via a money transfer service can rarely be retrieved if later found to be fraudulent.
• Be skeptical of anyone offering to hire you for a work-from-home job that pays more than you might expect, especially if they ask you for your checking account number or online banking information to issue your paycheck.
• Hang up on anyone calling you to say they have identified a virus on your cell phone or computer.

Don’t Click That

• Do not click on any links in emails or text messages claiming that your password has to be reset or your account has been compromised and you need to validate information via the link. That link may install a virus on your phone or PC or may grant them access to your phone or PC.
• Be careful when buying items online. Check out the retail site first and make sure it is secure and reputable.

Check Out That Charity

• Receiving emails from a ‘charity’ seeking help for victims of COVID-19, needy children, wildfires, etc., research it before sending money.

Remember, you are not alone in this. Talk to a trusted family member or your financial institution if you believe you have been a victim of a scammer, or if you are currently being targeted.

Also, check out these additional online resources from Redstone and other organizations.

Free webinar from Redstone:

https://www.eventbrite.com/e/recorded-webinar-fraud-trends-tickets-124725815271

Consumer Financial Protection Bureau

AARP on scam and fraud prevention