Cash Apps 101—How to Send and Receive Money More Safely

About Hannah Holmquist

Now Senior Copywriter at Brookdale, Hannah brings 11 years of PR and communications experience across agencies and companies, with a track record of creating diverse content for a variety of audiences across multiple therapeutic areas.

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Paying others through apps like Venmo®, PayPal®, Cash App® and Zelle® is becoming more common, making it easier than ever to split a bill, send a birthday gift or pay a service provider. While these peer-to-peer (P2P) payment apps offer speed and convenience, they also come with risks. Understanding how to use them more safely can help you avoid scams and protect your money.

How Cash Apps Work

The Federal Trade Commission (FTC) explains it this way: Mobile payment apps allow you to send and receive money through your smartphone by linking a bank account, debit card or credit card. When someone sends you money, it doesn’t automatically go to your bank — it stays in the app’s balance until you transfer it. Different apps have different features, processing times and fees, so it’s important to understand their policies before using them.

Using Cash Apps Safely

While digital payment apps are convenient, they should be used with caution. The National Council on Aging (NCOA) recommends these smart practices to help stay safe:

Send Money Only to People You Trust. P2P payment platforms are best used with family, friends and people you personally know. Transactions are typically instant and cannot be reversed, so sending money to the wrong person — or a scammer — can result in a permanent loss.
Double-Check the Recipient’s Information. It’s easy to mistype a username, phone number or email address. Before sending money, verify that the recipient’s details are correct to avoid transferring funds to the wrong person. Some apps offer a QR code scanning feature to help eliminate mistakes.
Enable Security Features. Most apps offer multi-factor authentication, PIN protection or fingerprint/face recognition. Consider enabling these settings to add an extra layer of security and help prevent unauthorized access.
Beware of Scams. Scammers frequently target cash app users. According to the FTC, fraudsters take advantage of the fact that once money is sent through a cash app, it’s often difficult to get back. Common schemes include:
- Fake emergency requests—Scammers may impersonate a grandchild, friend or family member claiming to need money urgently.
- Prize or sweepstakes scams—If someone asks you to send money to claim a prize, it's a scam. Legitimate contests don't require payments.
- Business imposters—A scammer may pose as your bank or a well-known retailer, asking for a payment or personal information. If you receive an unexpected message requesting money, contact the company directly.
- Investment and cryptocurrency fraud—According to the NCOA, scammers use social media, dating apps and even AI-generated voices to build trust and convince people to send money for fake investments.

Cash apps can help make everyday transactions easier, but they also require careful use. By understanding how they work, verifying recipients and staying alert for scams, you can take advantage of these digital tools while helping avoid putting your finances at risk. These apps are convenient for quick transactions with trusted individuals, but they may not always be the best choice. For purchases from businesses or transactions with unfamiliar individuals, you may want to consider using a credit card, which can provide more fraud protection and often allows for disputed charges if something goes wrong.

What to Do If You Get Scammed

If you believe you’ve sent money to a scammer, here is what you can do:

Contact the payment app’s support team to see if the transaction can be reversed. Some of these apps have dedicated fraud assistance.
Notify your bank if your account is linked to the app to help prevent further unauthorized transactions.
Report the scam to the FTC at ReportFraud.ftc.gov. The FTC investigates fraud and works to stop scams.

_{The above content is shared for educational and informational purposes only. The content is not intended to be a substitute for professional legal or financial advice or counseling from an attorney or financial advisor, and should not be relied upon for making legal, financial, or other decisions. Never disregard professional legal or financial advice or delay in seeking it because of something you have read on our site. Please consult your attorney or financial advisor before acting on any content on this website.}