Logging into your bank account and discovering a negative balance can be an incredibly stressful experience. It becomes even more harrowing when that balance reaches into the thousands or beyond. During the year 2023, users of the popular app, Cash App, encountered this issue not just once, but twice. The first incident occurred in early summer and the second, right before the changing of the season. However, the second incident took a much more sinister turn.
June 2023: A Glitch Leads to Double Charges for Cash Card Holders
On Monday, June 26, a considerable number of Cash App users found themselves in an unfortunate situation. A glitch in the system resulted in Cash Card holders being double charged for their purchases. The Cash Card, a debit card connected to Cash App balances rather than bank accounts, became a source of frustration for many. Users quickly took to X (formerly known as Twitter) to voice their complaints and figure out whether the issue lay with Cash App or fraudulent activity by the retailers. However, small business owners soon joined the conversation, stating that they were wrongly accused of overcharging their customers. It soon became evident that the fault was with Cash App itself.
After much uproar, Cash App finally acknowledged the issue and assured customers that they would receive refunds for the double charges.
Sept. 2023: A Glitch Takes a Dark Turn as Users Attempt to Scam Cash App
On Thursday, Sept. 7, Cash App experienced yet another glitch, but this time, the consequences were much more severe. Users found themselves unable to send payments, make purchases with their Cash Cards, or even buy Bitcoin. Although the issue was resolved within 24 hours, the damage was already done for many.
During this glitchy period, some resourceful Cash App users discovered a loophole. They were able to add large sums of money to their Cash App balance without any corresponding deductions from their bank accounts. What’s more, they could withdraw these funds into their bank accounts and use them for payments on online platforms like Amazon or even order food from McDonald’s. The audacity reached unimaginable heights, with some users managing to withdraw as much as $40,000. Unfortunately, once Cash App became aware of these illicit activities and fixed the glitch, users were left with negative balances in their accounts.
Now, several Cash App users find themselves facing debts amounting to thousands of dollars. One might wonder what will happen to those with overdrawn accounts. A TikTok user, @seansvv, took it upon himself to delve into Cash App’s terms of service for answers. The hackers, driven by their greed, neglected to do this before attempting to defraud a multi-billion dollar company.
According to Cash App’s terms of service, after 45 days of an overdrawn account, the company takes measures to recover the owed money. These measures include extracting funds from linked accounts, such as debit cards, credit cards, and bank accounts. Once an account remains overdrawn for 45 days, users lose the right to stop these recovery actions. Finally, Cash App concludes with a sobering detail.
“We might contact you or take other legal actions to collect amounts due. The Company may freeze, withhold, or remit funds in your Account in response to a subpoena, court order, search warrant, notice, or other binding order from a governmental authority or third party, including but not limited to tax levies, garnishment orders or lien notices.”
In simple terms, those who attempted to pilfer cash from the register while the Cash App team was momentarily distracted will find themselves in deep trouble. The best course of action now is to quietly return what was taken before it’s too late.