$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Cash App clearance fee scam
A scammer claims you have a large incoming Cash App payment that requires a clearance fee or tax payment before it can be deposited to your account — the incoming payment does not exist.
“impersonation scam”
↑ 604%Key indicators
Usually targetsCash App users
Often hitsEducators and students
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $12K
Recovery rate~15%
Annual reports330,000
Scam breakdown
1
The scammer contacts the victim claiming to be from Cash App, a government agency, or a contest, saying a large sum is waiting in their Cash App.
2
They explain that tax, clearance, or processing fees must be paid before the money can be deposited.
3
The victim sends the fee, but there is no incoming payment — the scammer takes the money and moves on.
What to do first
You never need to pay a fee to receive money on Cash App — this is always a scam.
Related terms
Cash App release fee scamCash App tax fee scamCash App pending payment feeBrand impersonation scamsCash AppSurgingCash App usersYoung adultsOlder adultsEducators and studentsRetirees and seniorsDrivers and gig workersUnited StatesCash App release fee scamCash App tax fee scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Emily, 35, a cash app users, encountered what appeared to be a legitimate brand impersonation scams situation while using Cash App. The scammer contacts the victim claiming to be from Cash App, a government agency, or a contest, saying a large sum is waiting in their Cash App.
Step 2
What happened next was calculated: They explain that tax, clearance, or processing fees must be paid before the money can be deposited.
Step 3
The pressure escalated quickly: The victim sends the fee, but there is no incoming payment — the scammer takes the money and moves on.
The outcome
Emily realized something was wrong when someone claims you have a pending cash app payment that requires a fee to release. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
You never need to pay a fee to receive money on Cash App — this is always a scam. Emily's experience shows why someone claims you have a pending cash app payment that requires a fee to release and they demand the fee in cash app, gift cards, or cryptocurrency are the clearest early warning signs.
How to identify it
- Someone claims you have a pending Cash App payment that requires a fee to release
- They demand the fee in Cash App, gift cards, or cryptocurrency
- The message creates urgency, claiming the pending payment will expire soon
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓You never need to pay a fee to receive money on Cash App — this is always a scam.
- ✓Check your Cash App activity directly in the app — if there is no pending payment showing, the claim is fabricated.
- ✓Report the scam to Cash App through the app and to the FTC.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- Advance fee fraud remains one of the oldest and most persistent scam categories, adapted to modern payment platforms like Cash App.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓You never need to pay a fee to receive money on Cash App — this is always a scam.
- ✓Check your Cash App activity directly in the app — if there is no pending payment showing, the claim is fabricated.
- ✓Report the scam to Cash App through the app and to the FTC.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
Advance fee fraud remains one of the oldest and most persistent scam categories, adapted to modern payment platforms like Cash App.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Cash App users, Young adults, Older adults
Geographic concentration
United States
Primary channel
Cash App — Brand impersonation scams
Why this group is vulnerable
Cash App users are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- Advance fee fraud remains one of the oldest and most persistent scam categories, adapted to modern payment platforms like Cash App.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about cash app clearance fee scam
How does the cash app clearance fee scam work?+
The scammer contacts the victim claiming to be from Cash App, a government agency, or a contest, saying a large sum is waiting in their Cash App. They explain that tax, clearance, or processing fees must be paid before the money can be deposited. The victim sends the fee, but there is no incoming payment — the scammer takes the money and moves on.
What are the warning signs of cash app clearance fee scam?+
Someone claims you have a pending Cash App payment that requires a fee to release They demand the fee in Cash App, gift cards, or cryptocurrency The message creates urgency, claiming the pending payment will expire soon
What should I do if I encounter cash app clearance fee scam?+
You never need to pay a fee to receive money on Cash App — this is always a scam. Check your Cash App activity directly in the app — if there is no pending payment showing, the claim is fabricated. Report the scam to Cash App through the app and to the FTC.
Who is most at risk for cash app clearance fee scam?+
This scam primarily targets Cash App users, Young adults, Older adults. It is most commonly reported in United States and typically appears on Cash App.
Is cash app clearance fee scam getting worse?+
Cash App clearance fee scam is currently surging — reports are increasing rapidly. It has been reported across US. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.