Is Cash App safe? This question often pops up when you hear about many scams happening on this platform and how users are losing money on Cash App?
Despite the fact that we hear news every other day about how someone got scammed on Cash App, the app has grown its popularity, it has now over 36 million active users.
In this article I will talk about Cash App’s safety features, How safe is Cash App as compared to its rival apps, What can you do to improve the safety of Cash App, and so on.
Is Cash App safe? Let’s dig out…
Is Cash App Safe?
Without a doubt Cash App has many appealing features that attract customers, Cash App is a peer-to-peer payment platform that allows instant transactions to your friends and family, But is Cash App safe to trust your hard money with?
I would say that Yes, Cash App is a safe platform to some extent but it has some drawbacks too. There is a chance that you might lose the money that is in your Cash App account.
Is Cash App Safe for Regular Use?
Cash App uses the top security features like encryption of user data and can claim PCI-DSS level 1 certification — the highest level of compliance with a set of standards designed to ensure companies store, transmit, and process credit card data to the highest standards.
It’s not just that, you also get Cash App fraud protection in case of unauthorized charges. This is pretty cool, yet not enough as the money that you have in your Cash App account is not insured.
Just like any other app, you will get in-app security features like multi-factor authentication, PIN code, Face ID, fingerprint unlock, etc. So in case you lose your phone you don’t have to worry that someone will access your account and steal your money.
Cash App is not mainly used for its security features, it is used for its other cool features which make it an attractive platform.
Features of Cash App in a Glimpse
1- Cash App allows you to instantly transfer money from one account to another for free.
2- You can receive your paychecks directly to your Cash App account.
3- Cash App can also be used as a bank account as it provides you with Bank Account Number and Routing Number.
4- Once you become a verified Cash App user, You can get a free debit card from Cash App.
5- You can enjoy boosts which are kinda discounts on a Cash App card.
6- Cash App has a “Borrow” feature that you can use to get up to $200.
7- You can also overdraft your Cash App account without paying any fee.
8- Cash App allows you to mobile deposit a check.
9- You use Cash App Card to withdraw money from ATMs as well as pay online and in stores.
10- If you are a person who likes to invest in stocks or cryptocurrency, you can do it with Cash App. You can also connect Cash App to Robinhood.
11- All transactions through Cash App are encrypted and safe.
Areas Where Cash App Lacks
These are the area where Cash App needs improvement, especially in the safety and security of its users.
1- This is the biggest disadvantage of Cash App, your money that is stored in Cash App is not FDIC insured. So in case, you lose it, or if the company goes bankrupt you are not gonna get it back. So, is Cash App Safe? eh…
2- Cash App treats money as hard cash, which means once you give it to someone, it’s gone, poof… So if you have sent money to someone by mistake, chances are that you are not gonna get the money back unless that guy has a change of heart. You can dispute the transaction at Cash App help to get it back. Again, Is Cash App safe? eh…
3- As the money on Cash App is treated like hard cash, you should also not expect to receive any compensation in case of a scam.
4- If your Cash App account is connected to a credit card you will be paying a 3% fee on each transaction.
5- Cash App also charges a fixed fee of 2% at ATM withdrawals.
6- You are also limited for the amount of money that you can transfer through the Cash App.
How to Keep your Cash App Account Safe?
Let me help you understand one thing, the weakest link in the Cash App security is the user. Yes, most of the scams that are happening on Cash App are not due to Cash App’s security failure. It is because of the user behavior.
So the question, Is Cash App safe, is not very important. I would say, is the user interacting with the app safely, makes more sense. These are the few tips that you can adopt to improve your Cash App account safety.
1- Multiple Security Layers
Always enable two-factor authentication on Cash App. If someone tries to access your account, you will get the security code on your phone number, this will help you know that your account has been compromised.
2- Use PIN for Cash App Login
Use Cash App login PIN to make sure that your account remains safe in case you lose your mobile device. To turn on Security PIN follow these steps.
- Launch Cash App
- Go to Profile
- Tap on Security Lock
- The Click on Privacy and Security Tab
- Tap on ID
3- Use Cash App Notifications
This is another awesome feature that adds an extra layer of protection for the user. Cash App sends you email and text notifications for each of the transactions that are being made. So if your account is compromised and someone transfers the money you will be notified instantly, this way you can take immediate necessary actions.
4- Reduce Cash App Balance
The more you have in your Cash App account, the more you are putting at risk. Do not store large amounts of money in a Cash App wallet, which is not FDIC insured. Instead, keep most of your money in your Bank Account.
5- Never Trust Unkown Users
Always transfer money to the people you know or the well-established, well-reputed organizations or brands.
6- Beware of the Scams
Always keep yourself updated with the latest scams happening, keep an on the news, learn about the famous scams, such as Cash App Sugar Daddy scam, $100 to $750 money flipping schemes, Cash App Call Center scams, Covid scams, etc.
Never, ever share your Cash App credentials or credit card details with anyone, do not sign up on unknown websites with your cash app credentials.
Is Cash App Safe Compared to Other Apps?
As we all know that Cash App isn’t the only P2P app out there, there other good P2P apps too, which also have some good features. Here we will only be discussing security. So, is Cash App safe compared to other P2P payment platforms, let’s see.
Cash App Rival Apps
Cash App has rivals like PayPal, Venmo, and Zelle. All of these are amazing platforms that are also based on peer to peer payment model. All of these apps allow you to instantly transfer money for free on the same platform.
These apps also have great security features like App password protection. Face ID or Fingerprint login and multi-factor authentication. The transaction data on these apps is also encrypted to ensure the security and privacy of the users.
However, the major difference lies in the security features that involve keeping money within the app.
Cash App and Zelle do not have any protection against fraud on authorized payments. You can file a dispute for an unauthorized payment by a merchant but if the payment was authorized by the user and it turned out to be fraud, you are not getting any fraud protection as you get on PayPal.
Your money in Cash App is not FDIC insured, you lose it, you lose it. There is no way you will get compensation in case the company goes bankrupt. But that’s not true for other P2P apps like Zelle or Venmo.
Zelle provides the best protection as your money never leaves your bank account which is already FDIC insured. Venmo only provides FDIC protection if you enable direct deposits through the app.
Now decide for yourself, Is Cash App Safe?
Cash App is a great online payment platform used by millions for their everyday transactions. It has some good security features and there are areas that need improvements. Especially Fraud Protection and FDIC insurance are needed.
I hope you got the information that you were looking for. Share your thoughts about the safety of Cash App in the comments below, as your thoughts are valued by me and other readers.