‘Over $1,300 just gone’: Mobile payment app losses lead to class-action lawsuit

ORLANDO, Fla. — Two local men claim scammers stole thousands from their Cash App mobile pay accounts and then the company refused to cover their losses.

Pastor Marvin Scott has an extra message for his congregation these days. He says mobile payment apps to transfer money by cell phone can be risky. Six weeks ago, hackers emptied his Cash App account.

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“Within a matter of three minutes, over $1,300, just gone,” Pastor Scott said.

The scammers accessed his Cash App account at a Target Store in northern California. Pastor Scott documented the fraud and contacted Cash App customer service online expecting a refund.

“And then trying to get information, trying to get answers, solutions, it was a nightmare,” Pastor Scott said.

“For that to happen is ridiculous,” Michael Arrington said.

Arrington claims Cash App has ignored his fraud claim for months. He showed Action 9 the transactions on his account where $3,200 was diverted into a stranger’s Chase Bank account.

“Chase tells me they can’t do anything. Cash App tells me they can’t do anything. Who do I talk to?” Arrington said.

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In just a year, Action 9 heard from a dozen Cash App customers hit by hackers. Many times, scammers use fake Cash App customer service phone numbers and emails to steal account numbers and passwords.

If someone hacks into a traditional bank or credit card account, there is some protection, but many customers tell Action 9 that has not been the case with Cash App.

A class-action lawsuit claims Cash App’s parent company, Square, fails to follow the Electronic Funds Transfer Act that requires dispute resolution once a customer sends a fraud complaint. The lawsuit alleges the company has automated responses that don’t give the customer a fair hearing.

“It should never be that difficult to get an answer to get a resolution,” Pastor Scott said.

Todd Ulrich contacted Cash App about both consumer complaints. The company said it has bolstered its fraud fighting resources by increased staffing and adding new technology. Cash App also said it added an 800 number so customers can reach a real person.

Pastor Scott finally got his money back.

“After I reached out to you guys, that’s when I got a response,” Pastor Scott told Action 9.

With Cash App or any mobile payment service, don’t link it to your checking account. Use a credit card so you can dispute fraudulent transactions and get your money back.

Todd Ulrich, WFTV.com

I am WFTV's Action 9 Reporter.