There has been a viral rumor circulating on social media that Cash App, a popular money transfer app, is randomly closing people’s accounts without any prior notice. Some users have claimed that they were not even able to create a new account after their old one was closed, but they did not provide any details about what type of error message they were getting. Is there any truth to this rumor, or is it just a hoax? In this article we’ll explore the evidence at hand.
CashApp is a service provided by Square, Inc., a financial company based in San Francisco, California. It allows users to send and receive money digitally using their smartphones. It also offers features such as buying and selling Bitcoin, investing in stocks, and withdrawing cash from ATMs using a Cash Card. CashApp has over 36 million active users as of 2023, making it one of the most popular payment apps in the US.
Did CashApp Randomly Close People’s Accounts for No Reason?
Despite its convenience and popularity, some users have reported issues with their Cash App accounts being closed without warning or explanation. This can be very frustrating and inconvenient, especially if you rely on the app for your personal or business transactions. Some users have taken to social media platforms such as Twitter, Facebook, and Reddit to express their anger and confusion about this issue. Some have also shared screenshots of their closed accounts as proof.
According to these messages, Cash App informs the users that their accounts have been closed due to a violation of their terms of service or for security reasons. However, they do not specify what exactly the violation or the security issue was. They also tell the users that they cannot reopen their accounts, but will able to withdraw any funds remaining on their balance.
Some users have claimed that they tried to create a new account using a different phone number or email address, but they were still unable to access the app. One man ranted about his direct deposits getting sent back on an account he had for over 6 years. Imagine expecting your payday deposit, only to learn it was sent back, because your bank closed your account for no apparent reason. Definitely sounds like an easy way to ruin a perfect day.
Why Does CashApp Close Accounts According to their Terms of Service?
Under normal circumstances CashApp closes account for reasons that fall under 4 different umbrella categories. The first is Suspicious or fraudulent activity: Cash App has a team of fraud experts who monitor all transactions on the app. If they detect any suspicious activity, such as a sudden increase in transactions or sending money to a high-risk country, they may close the account. This is done to prevent fraud and protect both the users and the company from potential losses. CashApp also uses artificial intelligence (AI) to find and ban accounts that are involved in scams or illegal activities.
The second reason would be a violation of terms of service: Cash App has strict rules and regulations that users must follow. If they violate these rules, their accounts can be closed . Some of the common violations include using fake names or information, sending money to unknown contacts, receiving too many chargebacks or disputes from customers, engaging in gambling or adult services, or using the app for commercial purposes without authorization.
The third reason CashApp may close accounts would be not verifying identity: Cash App requires users to provide personal information such as their full name and date of birth to verify their identity. This is done to prevent fraud and ensure compliance with financial regulations. If users fail to provide this information or provide false information, their accounts can be closed.
Lastly a negative balance: Cash App expects users to maintain sufficient funds in their accounts before making any transactions. If users have a negative balance on their accounts due to insufficient funds or overdraft fees, their accounts can be closed.
The strange thing about this situation is that the people affected claim there isn’t any violation they broke, so maybe it’s just a glitch and they will be able to get their accounts back in the near future. If Cash App is randomly closing accounts for no reason, could that be an early sign they are experiencing financial issues behind the scenes? CashApp bank collapse would be catastrophic.
