By Andrea Stevens
AFRO Staff Writer
astevens@afro.com
With the growing popularity of peer-to-peer payment apps like Cash App, financial scams have become more prevalent. Scammers exploit the platform’s ease of transactions, anonymity and lack of chargeback options to deceive unsuspecting victims. Financial solutions investment advisor Zakiyyah Muhammad explains how these scams work and how improving financial awareness can help users protect their money.
One prevalent scam is the “cash flipping” scheme, where fraudsters promise to multiply a user’s money if they send an initial payment. Once the money is sent, the scammer vanishes, leaving the victim with no recourse.
“Scams are reported daily by customers within the bank. I have personally noticed an increase in the types of scams throughout my years in the finance industry,” Muhammad said. “The most common victims are elderly retirees and young people.”
According to the Federal Trade Commission, “consumers should protect their personal information by using strong passwords and enabling multi-factor authentication whenever possible.”
Additionally, Cash App’s instant transaction model makes reversing payments difficult. Unlike traditional banks, Cash App does not offer fraud protection for peer-to-peer transactions, making it challenging for users to recover stolen money. Victims may face financial strain and loss of trust in digital payment platforms.
“Scammers aren’t hacking into banks—they’re not that clever. Instead, they phish for sensitive information from unsuspecting people,” Muhammad said.
Fraudsters frequently exploit social media platforms such as Instagram, Twitter and Facebook to create fake profiles or hijack existing ones. They impersonate people the victim may know, using the stolen identity to solicit money through Cash App. Others lure victims by promising large rewards in exchange for small upfront payments. Once victims pay, the scammers disappear or take over their accounts to target new victims.
“This can be prevented by not allowing anyone to rush you into financial decisions or sharing personal information or codes,” Muhammad said. “Evaluate any request, especially if it involves making a payment. Use your gut—ask yourself, ‘Does what they’re asking make sense?’”
The FTC advises users to be cautious of unsolicited messages on social media, especially those offering free money or promising financial gains. If a deal sounds too good to be true, it likely is.
Tips to avoid scams
- Verify the source. Never send money to someone you don’t know personally.
- Don’t share sensitive details. Legitimate customer service will never ask for your Cash App PIN or login credentials.
- Enable security features. Use two-factor authentication and monitor your account for suspicious activity.
“By keeping up with scammers’ latest tactics and talking to friends and family about fraud, we can help protect ourselves and others,” Muhammad said.
If you suspect you’ve been scammed, report it immediately. The FTC encourages users to report fraud at ReportFraud.ftc.gov. Cash App also provides tools for reporting fraudulent activity. As scams continue to evolve, staying informed and exercising caution can help users avoid becoming victims