Cash app is a mobile payment service which was developed by block, Inc. This App has a lot in common with other peer-to-peer payment services like Zelle, Venmo and PayPal. It allows users to make money transfers using a mobile phone app. This service is only available in the united kingdom and the United States.
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Users are allowed to create a free account which enables them to send and receive money from other users. You choose a unique username called $cashtag once you download the Cash App app. The app is very easy to set up and use, but you might wonder if Cash App is safe and secure enough for regular use?
However, it turns out that while Cash App has a large number of advantages tied to it, there are also many disadvantages that you might not know about. In this article, I will teach you about certain risks/dangers associated with using the Cash App app.
Though the Cash App positions itself as a wonderful alternative to a traditional bank account, the safety is lagging in some areas, one of which is that your balance is not FDIC insured and this could be a big problem if the company is hacked by scammers or they were to go out of business.
Is Cash App safe?
Yes, Cash App is relatively safe due to its encrypted transactions, and the app has certain security features and protections. However, there are certain setbacks to using it.
Advantages of Cash App
Often times people use the Cash App because they have a group of friends or family who use it. However, you might be interested in using it on your own. Not minding the reasons that brought you to Cash App, there are many reasons why you might want to stick to this app.
- Cash App can be used as a bank account because gives you a routing and account number which allows you to make direct deposits, so you can send your paycheck directly to Cash App. Likewise, you can make your utility payments using Cash App.
- Cash App charges no fee while making payments when connected to a bank account or to a debit card.
- Cash App debit card is available for use while making purchases at the old-fashioned stores.
- Using your Cash App account, you can invest in both stocks and cryptocurrency.
- Transactions on Cash App are encrypted and safe.
Dangers of Cash App
Cash App can be used to replace your traditional bank account. However, there are certain shortcomings attached to it that you should know about.
- Unlike in the traditional bank account, money kept in the Cash App account is not FDIC insured, which means that the entire fund in your Cash App balance is vulnerable if there were to be an unexpected shutdown or if Cash App were to lose your money.
- Also, Cash App balances do not earn interest, unlike the traditional bank account. So your balance still remains without any increase over time.
- In Cash App, there is a withdrawal limit of $310 per transaction while using the ATM. And you can not withdraw more than $1,000 in a week.
- A transaction fee of $2 is charged while using the Cash App’s debit card at the ATM and while making a transaction with the credit card you are charged a 3% fee.
- Cash App doesn’t offer live customer support through any platform outside the app. If you have an issue with the app, you can contact them directly from the support section on the app, and that still remains the only way to get through to Cash App support as trying to reach them through any other means could put you through to scammers.
- If you recall Cash App transactions are instant so if you attempt to send money to that wrong Cash App account, it will likely go directly to the account of the owner of the correct username and there is currently no way to recover that money after a complete transfer.
- If you know the Cash App too well, you should know that there are different types of scams rampant on the app. Scammers use features in Cash App meant for good to try t get people to do away with their hard-earned money, thereby tarnishing the app’s image.
Tips for Protecting Yourself on Cash App
Cash App just like many other banking apps is relatively safe to use as long as you operate carefully, and stay vigilant for potential scams following basic security best practices. Below is a few tips on how to protect yourself while using the cash app.
Beware of Fraudulent Transactions
Cash App always warns users against a series of transaction scams which involves scammers promising money, goods, or services in return for funds.
Reduced Fund Storage
Do not store a large amount of money in the cash app as the account is not federally insured and there is a chance you could lose it.
Enable Security Features
Beware of Customer Support Scam
Cash App support can only be contacted through the app on the device. Cash App does not provide users with a direct line to contact customer care, this encourages scammers to impersonate them thereby obtaining access and stealing users’ personal data and details.
Conclusion
The cash app is generally a good service app but there are so many fraudsters out there who are willing to defraud you of your hard-earned money using the app. By knowing the dangers attached to the Cash App which I believe this article would help you with, you can avoid falling a victim to them. Please share and drop your comments below.
