(KVOA) – The Better Business Bureau (BBB) has warned people of scammers who are exploiting people’s dreams of getting rich quick by promoting “money flipping” scams on social media.
The BBB said it sees dozens of reports of these scams every month.
The BBB said the scam works like this: You see a photo of a pile of cash on social media. In the caption, the user brags about “turning” a few hundred dollars into thousands. Do you want to do it too? It’s easy. Simply send a message to the account holder.
Then the BBB said the “investor” will ask you to send money, usually $ 300 to $ 800 through the Cash app or another digital wallet service.
Then the BBB said they will “invest” your money in the stock market, where it will multiply in a few days.
Here’s the catch. The BBB said if you are trying to get your money back the scammer claims that Cash App will charge a fee for the return.
The BBB said in other cases the scammer claims that you have to pay tax to the Internal Revenue Service first. Some victims report that they sent thousands of dollars in bogus charges. Every dollar you pay for flipping money, from the initial “investment” to what it claims to be taxes, goes straight into the fraudster’s pocket.
The BBB said you won’t see your money anymore.
The BBB said Cash app and its parent company square are aware that this is how scammers use their platform and have communicated with customers who have been affected by certain scams. They recommend any customer who needs additional help to contact their support team cash.app/hilfe.
BBB Tips for Avoiding Money Flipping Scams:
- Tell a real cash app giveaway about a scam. According to BBB, Cash App has been running weekly giveaways under the hashtag #CashAppFriday since 2017. The company works with businesses and celebrities who ask users to retweet or comment on their social posts in hopes of being selected for a cash prize. Scammers often use similar language and pretend they’re part of an official giveaway. Make sure a giveaway is genuine before replying.
- Search online. The BBB said before contacting a potential scammer, it would do a web search for their username or phone number. If it is a scam, chances are other victims have posted complaints and information online.
- Be very careful with buzzwords. The BBB said certain sentences should raise a red flag. Don’t believe anything that is “guaranteed” to go well, or that offers little or no risk with a high return.
- Treat the Cash app like cash. The BBB said that once you send money through the Cash app, you may not be able to get that money back. It is now the scammers’ preferred payment method so be careful.