Health

Customers sending cash with the click of a button on an app could lose money to scammers

BOSTON — More than ever, people are looking to use money transfer apps as they focus on contact-free shopping and transactions.

But Boston 25 News found more scammers are using the apps, as well to try to get their hands on your money.

Alisia Thompson says she discovered that the hard way when $2,500 was drained from her bank account while using Cash App.

“Cash App - a lot of people use it. And I thought it was pretty safe,” Thompson said.

The app does NOT have a customer service phone line where you can speak to an agent.

If a customer searches for a number to call online, illegitimate numbers often show up with a scammer waiting on the other end of the line.

Alisia says she wound up unknowingly talking with a scammer who asked her to download a program and run a “demo” transferring funds.

She says her money was gone in moments.

“My bank tells me that $1,400 came out of my account. And then turn around, $1,100 comes out of my account. I couldn’t believe it,” Thompson said. “I felt violated. It’s not fair. And it’s not fair to not be able to speak to someone when using their app.”

Law professor Anita Ramasastry with the University of Washington, says banking has changed because of money transfer apps. She said some of the apps have no live customer service representatives, and their rules are different than traditional banks.

“So what they can do, can’t do, and also whether they reserve the right to refuse your money, hold your money, freeze your money, etc. That’s the frustrating part, right? And so that’s the piece that consumers have to be careful of,” Ramasastry said.

Some helpful tips to protect yourself:

  • Learn how a company communicates with its customers.
  • Stay away from large transactions on these apps.
  • Link your account to a credit card - not your bank account so you have fraud protection

Cash App says it monitors search sites and social media and works to report and shut down scammers impersonating customer service and does its best to educate customers about potential scams. The app says it will never ask customers for a pin or sign-in code outside of the app, and suggests you call immediately if you think you’ve been victimized.

Cash App’s true customer service number is: 855-351-2274

It’s recommended Venmo customers closely read their terms of service, which allow for a hold on funds while questioned charges are resolved. We’re told the customer featured in our video eventually had his claim resolved.


Download the free Boston 25 News app for up-to-the-minute push alerts

>> Complete local and national coronavirus coverage here

RESOURCES:

- Complete local and national coronavirus coverage here

- Follow us on Facebook and Twitter | Watch Boston 25 NOW

- Download our free apps for your phone and smart TV