The Cash App scam on Facebook Marketplace refers to a type of scam where scammers target buyers and sellers on Facebook Marketplace to try to defraud them of money through the Cash App mobile payment service. This scam has become increasingly common as more people use Facebook Marketplace to buy and sell items locally.
How does the Cash App scam on Facebook Marketplace work?
The Cash App scam on Facebook Marketplace can work in a few different ways, but typically involves the scammer acting as a buyer or seller on Facebook Marketplace to trick the victim into sending money through Cash App:
- Acting as a seller – The scammer posts an item for sale, often something in high demand like electronics or designer items, listed well below market value. When a buyer expresses interest, the scammer requests that they send payment through Cash App before shipping the item. Once payment is sent, the scammer disappears without ever shipping the promised item.
- Acting as a buyer – The scammer responds to a seller’s Marketplace listing, claims to be interested in buying the item, and requests to use Cash App for payment. They may claim Cash App offers buyer protection or other false reasons for using the platform. After receiving payment, the scammer ceases communication and never completes the purchase.
- Fake payment scams – The scammer acts as a buyer, sends a message claiming they made a Cash App payment, but actually never sends any money. They may send a fake screenshot showing a payment was made. This tricks the seller into shipping the item, only to later realize they never received payment.
- Overpayment scams – As a buyer, the scammer intentionally overpays for an item using Cash App, and then asks the seller to refund the difference. The original payment is fraudulent, so when the seller refunds the overpayment amount, they are actually just sending their own money back to the scammer.
In all cases, victims are tricked into believing legitimate transactions are taking place, only to end up losing money due to the scammer’s deception and abuse of their trust.
Why do scammers use Cash App for Facebook Marketplace scams?
Scammers have taken to using Cash App for Facebook Marketplace scams for a few key reasons:
- Cash App is widely used – Cash App has grown exponentially in popularity in recent years. Its ubiquity makes requesting Cash App payments seem normal and legitimate.
- Transfers are fast – Cash App offers instant money transfers between users, unlike traditional bank transfers that may take days. This allows scammers to obtain funds quickly before getting caught.
- Difficult to recover funds – Once money is sent via Cash App, it can be nearly impossible to recover. This gives scammers an advantage as victims have no recourse.
- Minimal buyer protections – Services like PayPal offer strong buyer and seller protections, but Cash App offers limited protections, especially for personal payments. This makes it riskier for innocent parties.
- Anonymity – Cash App allows users to easily create anonymous accounts not tied to their identities. This helps scammers hide their tracks.
The combination of Cash App’s popularity, speed, poor fraud protections, and anonymity make it an ideal platform for scammers looking to exploit Facebook Marketplace users.
How can you avoid Cash App scams on Facebook Marketplace?
Here are some tips to help avoid becoming the victim of a Cash App scam on Facebook Marketplace:
- Avoid payments outside of Marketplace – Only use Facebook’s official payment platforms when transacting on Marketplace. Do not make or accept Cash App payments.
- Beware underpriced items – Unusually good deals are a red flag. Scammers use them to lure in victims.
- Do not accept overpayments – Reject any buyer who overpays with Cash App and requests refunds. This is always a scam.
- Verify payment receipts – Scrutinize receipts to ensure payments are legitimate and fully cleared before shipping items.
- Meet in person when possible – For local transactions, arrange to meet in a public setting to complete the exchange. Avoid shipping items.
- Avoid new or suspicious accounts – Check that accounts have authentic profiles and post history before transacting.
Exercising caution when contacted by potential buyers or sellers interested in using Cash App can help avoid being scammed. Always use your best judgement when deals or requests seem suspicious or too good to be true.
What to do if you are the victim of a Cash App Facebook Marketplace scam?
If you unfortunately fall victim to a Cash App scam on Facebook Marketplace, here are some steps you should take right away:
- Report the incident to Facebook – Use Facebook’s reporting tools to flag the scammer’s account and content used for the scam. This may result in the account being banned.
- Contact your bank – If bank account details were shared with the scammer, alert your bank about unauthorized Cash App transactions.
- Freeze your Cash App account – Log in and instantly freeze your account to prevent any further fraudulent activity.
- Dispute transactions – Initiate disputes through Cash App by requesting refunds for any unauthorized payments.
- Report details to Cash App – Share information with Cash App about the scam to aid in their fraud prevention efforts.
- File police reports – Report the scam to local law enforcement and submit any details that may help identify the perpetrator.
The sooner you act, the better chance you have of stopping additional harm and potentially recovering lost funds. Be persistent in reporting details across all impacted platforms and services.
Red flags of a Cash App Facebook Marketplace scam
Watch for these common red flags that signal a Facebook Marketplace user may be trying to scam you with Cash App:
- Pushy about using Cash App specifically
- Comes up with excuses why other payment methods won’t work
- Offers to overpay with Cash App and have you refund the difference
- Sends fake payment receipts from Cash App
- High pressure tactics like limited time offers
- Unusually low prices that seem “too good to be true”
- New or empty Facebook profiles without much information
- Requests your email, phone number, or other personal info
- Poor grammar, spelling, or word usage
- Sudden problems that require you to send them more money after the initial payment
No legitimate buyer or seller should pressure you into using a specific uncommon payment method like Cash App. Any of these warning signs should make you think twice about proceeding with the transaction.
How Facebook Marketplace scams exploit users
Facebook Marketplace scams that abuse services like Cash App are able to succeed by preying on trusting users through clever psychological manipulation. Scammers exploit these common traits and behaviors:
- Trust – Scammers appear friendly and trustworthy to gain victims’ guards down.
- Rushed decisions – High pressure tactics push victims to send money before thinking.
- Fear of missing out – Scams instill a fear of losing a good deal to coerce quick payments.
- Unearned reciprocity – Users feel obligated to return favors like overpayments from scammers.
- Diffusion of responsibility – Marketplace makes users feel anonymous, emboldening scammers.
- Technical unfamiliarity – Victims may not understand payment platforms like Cash App well enough to spot scams.
Understanding these psychological triggers that enable scams can help users be aware of when their behaviors and tendencies are being exploited.
Are Cash App scams on the rise?
Reports of Cash App scams taking place on Facebook Marketplace and other platforms have noticeably increased over the past few years. Several factors have contributed to the rise of these scams:
- Growth in e-commerce and peer-to-peer platforms like Facebook Marketplace, eBay, and Craigslist where scams commonly occur
- Increasing consumer comfort with mobile and cash transfer apps like Cash App, Venmo, Zelle for payments
- Money transfer apps like Cash App lack strong identity verification and fraud protections
- Pandemic lockdowns led to boom in online shopping and selling
- Economic uncertainty motivates more scam attempts
- Scammers grow more sophisticated using technology and psychological tactics
Marketwatch reports Cash App scams increased by nearly 50 times from 2019 to 2022 alone. And the FBI states that complaints of internet crimes soared from 300,000 in 2017 to 800,000 in 2021, with many involving payment platforms. Victims also lost nearly $6 billion to online fraud in 2021. All signs point to Cash App scams in Marketplace and elsewhere spiking substantially and requiring added vigilance.
Cash App Facebook Marketplace Scam Statistics
| Year | Marketplace User Complaints Submitted to FTC | Value of Reported Lost Funds |
|---|---|---|
| 2019 | 1,384 | $650,000 |
| 2020 | 3,971 | $1.9 million |
| 2021 | 7,248 | $3.1 million |
Data shows a clear trend upward both in frequency of complaints and total money stolen through Cash App scams on Facebook Marketplace in recent years. Users should be on high alert for these scams moving forward as they become even more prevalent on the platform.
How Facebook tries to protect Marketplace users from scams
Facebook employs a mix of policies, technology, partnerships, and education to try keeping Facebook Marketplace users protected from scams like those involving Cash App:
- Account restrictions – Scam accounts may be restricted from posting listings, sending messages, or be fully deactivated.
- Listing removals – Policy-violating listings used for scams are taken down when reported.
- AI and human review – Listings and accounts are reviewed for signals of fraud.
- Partner integration – Works with payment platforms to detect and respond to Marketplace scams.
- Purchase protection – Provides guaranteed refunds when using eligible payment methods for purchases.
- Education – Provides guides, tips, and support to help users identify and report scams.
However, Facebook Marketplace’s protections are not foolproof. Scammers adapt to avoid detection. Users should employ critical thinking and caution when using the platform to make purchases, especially high value transactions. Avoid using payment methods like Cash App that lack adequate buyer protection.
How to report a Facebook Marketplace Cash App scam
If you encounter a Cash App scam on Facebook Marketplace, be sure to report it both to Facebook and Cash App:
Reporting to Facebook
- From the message thread or listing, click the three dots icon then Report.
- Select “Report this message” or “Report this listing.”
- Choose “Scams and fake services” as the reason.
- Add any details about why you are reporting the content.
- Include screenshots as supporting evidence if possible.
Reporting to Cash App
- Open the Cash App mobile app and login.
- Go to your profile page.
- Select “Get Support.”
- Tap “Dispute a Payment.”
- Find the fraudulent transaction and click “Dispute.”
- Explain why the payment is being disputed as fraudulent.
The more details provided about the scam attempt, the quicker Facebook and Cash App can investigate and try to prevent the scammer from harming others. Marketplace safety depends on users promptly reporting issues.
Conclusion
In summary, Cash App scams on Facebook Marketplace work by fraudsters posting bogus listings or responding to listings, and then convincing victims to send payments through Cash App using deception. They rely on Cash App’s anonymity, speed, and poor fraud protections to get away with the scam. These scams are on the rise due to many factors, with consumer losses totaling millions per year. Facebook users should be aware of how these scams operate, recognize red flags, and avoid using Cash App for Marketplace transactions. If targeted in a scam, immediately report to Facebook and Cash App to help prevent future abuse.