Cash App is a great way to buy Bitcoin and other cryptocurrencies but beware of scammers. Read on to learn about common Bitcoin scams on Cash App.
Can You Get Scammed through Bitcoin on Cash App?
Yes, you can get scammed with Bitcoin on Cash App. Scammers create a chain of Bitcoin scams on Cash App by creating a fake investment fund to steal someone’s money. Next, they’ll get that person to make a testimonial video and give over their social media account credentials.
Once the scammers have these things, they’ll ghost the victim and start scamming their acquaintances using the testimonial video.
So if you see signs of this scam, report it to the FTC. And remember, if it sounds too good to be true, it probably is.
RELATED READ: What Happens If Sent Bitcoin to Old Address Cash App?
Explaining the Cash App Bitcoin Scam
The most common way scammers use Cash App to scam people out of Bitcoin is a sinister yet ingenious idea.
First, the scammers work together to trick someone into thinking they’re an investment group and that Bitcoin is their forte. The scammers will then promise a massive return on their investment and show them a few testimonial videos from people they know.
Of course, all of this setup is fake. But when you don’t know much about Bitcoin trading and see this opportunity, the anticipation might kick in. Unfortunately, there are many reasons why people fall for scams like this.
But anyhow, if the victim sends the scammers money, they don’t stop there and ghost the victim as other common scammers would. Instead, they build up upon this victim.
At this point, the scammers hijack the victim’s social media account by having them give their account credentials.
Before the scammers let go of the victim, they exploit them further by having them take a video of themselves encouraging others to go for this investment.
In this video, the victim might hold up some money, keys to a car, jewelry, or something else as a token to this “investment’s success.” They’ll also encourage their peers to go for this investment.
The scammers will disappear at this point since they’ll have the victim’s money, testimonial video, and social media accounts. And now you can imagine just how sinister this scam is.
Why Do People Fall for this Scam?
This isn’t a scam that’s obvious when you see it. When someone sees a video of their close friend or acquaintance promising easy and quick riches, they’re more inclined to go for it, especially if they’re in a tough spot.
For example, there’s the story of Joseph Thompson, who saw a video of his son’s friend and fell for the scam. There’s also Tiffany Gill, who was pulled by her friend’s hijacked account.
But you might be wondering why a victim would keep going and give the scammers a testimonial video and their social media account credentials.
The thing is, scammers, exploit the victim’s emotions and excitement at this point. After the victim gives the money, which is one of the first steps, they’ll be excited about their returns and do almost anything the scammers ask to follow up.
Tips to Avoid Falling for Cash App Scams
According to the Federal Trade Commission, Bitcoin and other cryptocurrency scams are one of the most common types of fraud in America. And that makes sense since most people don’t know much about Bitcoin except that it’s valuable.
So our first tip to avoid Bitcoin scams on Cash App (or anywhere else) is to proceed with extreme caution towards any opportunity involving both. And remember that if you don’t know much about something, you can easily fall victim to a scam.
If you know someone more knowledgeable on this matter, ask for their opinion on the situation and explain all the details.
Also, if you see a testimonial video or a text from someone you know encouraging you to participate in an investment, have this person talk to you and address you personally before proceeding.
Lastly, think of the investment before you give anyone your money. If they’re promising you a fast and unrealistic return on your money, it’s almost always a scam. No one can double your money in a week or month or whatever.
In reality, investments are a risk, and you should only invest as much as you can afford to lose because that might happen.
How to Trade Bitcoin Safely on Cash App
Before you start trading Bitcoin on Cash App, you’ll need to have an existing balance in your wallet and may need to enter extra geographical information since Cash App doesn’t allow trading Bitcoin in all countries.
And to make sure you avoid any possible scams while trading, follow either of the following crypto trading procedures approved by Cash App, aside from direct buying and selling stock.
Place a Custom Trading Option
A custom trading option allows you to set a price at which the application will automatically buy or sell Bitcoin once it hits that price. This allows you to automatically buy Bitcoin when the price drops enough or catch the wave when the price rises.
Schedule an Auto Investment
This option is better for beginner traders. It allows you to set a time for your investment to be made automatically. For example, you can set it to invest a certain amount every day, week, or two weeks.
It’s mainly used to automatically invest a portion of your paycheck without doing it manually every payday.
Summary
If you’ve been out with many people, you’ve likely used or heard of Cash App. The application is free to use, and it’s a quick and convenient way to pay your share of the tab with a few clicks.
But a common misconception people have about Cash App is that it’s only for sending and receiving money. In reality, it’s more than that. Apart from peer-to-peer transfers, you can use Cash App for online shopping, stock trading, and Bitcoin trading.
However, when some hear the words crypto trading and phone application together, they might get suspicious since most people want to trade through more established brokers.
So in this article, we’re going to talk about how to trade Bitcoin safely through Cash App and avoid common scams.
Did you find this article helpful? Let us know in the comments below!
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