Is the Cash App pyramid scheme a legit money circle? Continue reading to learn more about it and avoid getting scammed.
If you have a Cash App account, you’ve probably heard of the Cash App pyramid scheme at least once before.
But that scheme isn’t what you think it is. It’s actually a very common scam that you should be aware of and try to avoid falling for because, like most other online payment services, you won’t be able to get a refund from Cash App if you end up getting scammed.
So, continue reading to learn more about this scam and how to avoid it.
Contents
What Is the Cash App Pyramid Scheme?
The Cash App pyramid scheme is a widespread scam that many users have fallen for. Basically, users are asked to send money to a certain account with the promise of a large return/commission if they get a number of other people to join in and send money as well.
How Does the Cash App Pyramid Scheme Scam Work?
The Cash App pyramid scheme is all about fake money circles. First, the user gets an email explaining the pyramid scheme. Then, they’re asked to pay a fixed amount of money and bring in 3 or 4 other people to join in and pay the same.
If the user doesn’t figure out this is a scam, they’ll do as asked, hoping to get a higher amount of money in exchange once they bring in the required number of members.
However, as you would expect from a scam, users who send the money or convince other people to do so won’t receive anything in return.
How to Report Scams on Cash App?
If you get an email regarding the Cash App pyramid scheme or any other scam, reporting it to Cash App should be a top priority for you. So, to report any suspicion of fraud, follow these steps:
- Open Cash App on your smartphone
- Click your profile photo
- Navigate to the “Cash Support” tab and choose “Something Else” from the drop-down menu
- Explain the scam you received and send the message
Can You Get a Refund if You Got Scammed With the Pyramid Scheme?
The short answer is no; Cash App doesn’t issue refunds for users in case of fraud or scam. Since Cash App money isn’t FDIC insured, the company isn’t obligated to issue refunds to scammed users.
However, there’s one exception to this case; if the money you lost came through your linked bank account, you might be able to get a refund by contacting your bank. Of course, this isn’t guaranteed to work, but it wouldn’t hurt to try.
Other Cash App Scams
The pyramid scheme isn’t the only Cash App scam out there. Here are some of the other scams that pop up here and there on the internet:
The Cash App Circle Money
This one is very similar to the pyramid scheme. The only difference is that a money circle often has a higher number of people.
Fake Customer Support Calls
Some Cash App users have reported receiving fake calls or emails from Cash App’s customer support. For example, the caller would often ask the user to provide their account details for database updates.
Fake CashAppFriday Offers
While #CashAppFriday offers do exist, not all of them are real. For example, if a cash app offer asks you to provide your account details or send money, it’s certainly a fake one.
Expensive Items
If you’re buying a house, a car, or any other expensive item, it’s common sense not to attempt to pay for it with Cash App.
Cash App doesn’t provide buyer protection, so there’s no way for you to prove that you’ve sent the money for a particular purpose, like purchasing a house.
So, it’d be best to limit Cash App transactions to small amounts just to be on the safe side.
Cash Flipping
Cash flipping is a scam where you’re asked to send money to receive double or triple the amount you sent. Sounds too good to be true, right? Well, that’s because it is!
So, as a general rule of thumb, it’s best not to trust promotions promising to make you money out of thin air.
How Safe Is Cash App?
As far as online payment solutions go, Cash App is considered pretty safe to use; it has multiple built-in safety features that create a safe environment for its users.
Some of these features include text message alerts in case of suspicious login attempts, AI-driven scam flagging, and a two-step confirmation for money transfers to people not on your contact list.
Still, it’s recommended that you don’t send money to people you don’t know or haven’t met before. And it’s highly important to never share your credentials with anyone, no matter who they claim to be.
Tips to Protect Yourself From Cash App Scams
Educating yourself about the Cash App fraud-protection best practices will keep you and your money safe. So, here are some tips for using Cash App safely:
- Never send money to people you don’t know
- Don’t send large amounts of money in a single transaction
- Only send money to individuals and businesses you trust
- Use two-factor authentication for your account login and create a strong password
- Never share your account details with anyone
Final Words
Alright, now that you understand what the Cash App pyramid scheme is all about, we’re sure you won’t be falling for this scam if you happen to stumble upon it.
Also, keep in mind that reporting these types of scams is important to help the company track and eliminate them, thus helping to protect other users.
If you suspect that you’ve already gotten scammed, you might be able to get a refund by contacting your bank if the money you lost came through it.
