Is Ibotta a Scam?

If you’re thinking of using Ibotta, you need to know whether it’s safe. Is Ibotta a scam? 

Below, we explain whether Ibotta is a scam and discuss some steps you can take to improve your safety when using this cashback app. 

What Is Ibotta?

Ibotta is a free app that lets you earn cashback when you shop. 

It works like this: You browse the offers available in the app, buy items in-store, and then submit your receipt to the app to earn cashback. The money accumulates in your Ibotta account, and once you reach the minimum amount ($20 at the time of writing), you can withdraw it.  

Ibotta partners with hundreds of retailers, including Walmart, Ulta, Kohl’s, Sam’s Club, Chewy, and more.

The company was founded in 2012 and is headquartered in Denver, Colorado. It went public in April 2024 and is a publicly traded company. 

Is Ibotta a Scam?

No, Ibotta is not a scam. It’s a legitimate cashback app. 

Ibotta has been reviewed by several third-party publications and review sites.

For example, a Clark Howard review concludes that Ibotta is a useful app for earning cashback: “Overall, I found that Ibotta is a great way to earn cash back for regular purchases.” 

A FinanceBuzz reviewer reports that they earned $1645.37 over several years of using Ibotta, and Side Hustle Nation gives Ibotta a rating of 4.8 out of 5.0, noting that the app is “free to use, and you basically make money doing your everyday shopping. Can’t go wrong with that!” Meanwhile, Millennial Money rates the app as 9.5 out of 10.  

CNBC Select has also written about Ibotta.

User reviews of Ibotta are mixed, but lean positive as of this writing: 

• 3.6 out of 5.0 stars (from over 3,000 reviews) on Trustpilot. 
• 4.5 out of 5.0 stars (from over 10 reviews) on Capterra.
• 4.6 out of 5.0 stars (from over 700,000 reviews) on Google Play.
• 4.8 out of 5.0 stars (from over 1.9 million ratings) on the App Store. 
• 3.05 out of 5.0 stars (from over 250 reviews) on Better Business Bureau.
• 4.4 out of 5.0 stars (from over 6,000 reviews) on Sitejabber.

Positive reviews praise great offers found on the app, the fact that the app always pays on time, and good customer service, including reminders when customers forget to clip an order.

Negative reviews say the app is difficult to use. Several users report buying multiple items that supposedly qualified for cashback, only to receive cashback for only one item, or, in some cases, none at all. 

On online forums like Reddit, users generally report positive experiences with Ibotta. 

One person writes:

“I’ve been using it for 10 years and never had an issue. I’ve gotten over $1200 back.”

However, several people warn that receipt scanning can be unreliable and customer service responses can be slow or unhelpful. Some users also report missing credits that require opening a customer support ticket to resolve. One user mentions inactivity fees that drain your balance.

In its terms of use, Ibotta says that it won’t charge or deduct maintenance fees during the first six months after you sign up for an Ibotta account. However, after that period, if you do not redeem at least one offer or receive credit for a referral bonus within 180 days, it will deduct an account maintenance fee. 

Ibotta has its own subreddit (r/ibotta) where you can write about your experience with the app or ask questions. 

The company is not Better Business Bureau accredited and holds an “F” rating as of this writing. BBB ratings reflect how the BBB thinks a business interacts with its customers. The BBB says the reason for its rating is that Ibotta has received over 500 complaints, 21 of which have not been resolved. 

People complain about Ibotta deactivating their accounts for alleged fraudulent behavior without specific evidence being provided to the user, the inability to withdraw balances before account deactivation, maintenance fees, issues with submitting receipts, and poor customer service. 

Ibotta security

In its privacy policy, Ibotta briefly describes its security measures.

It says it uses and upgrades “certain physical, managerial, and technical safeguards.” 

In a separate ‘Complete Security’ section of its website, Ibotta states that it has a “robust security program” based on security frameworks such as NIST 800-53 and SOC 2, conducts annual third-party security audits, has a dedicated internal security and privacy team, and offers a bug bounty program for external researchers. 

Ibotta’s security protections include encryption, access control, privacy protections, vulnerability testing, and “additional safeguards.” 

Ibotta privacy

Ibotta explains the kind of information it collects, why, and with whom it shares it in its privacy policy.

It states that it may collect the following data: 

• Registration and contact information: Name, email address, password, phone number, and social media account details (if used to sign up).
• Relationship and demographic information: Lifestyle preferences, interests, birth date, gender, income, and other data to personalize offers.
• Shopping and purchase data: Search terms, shopping list items, full purchase history (items, prices, stores, timestamps), and receipt details you submit, including whether you used SNAP/EBT benefits.
• Transaction and loyalty data: How you interact with offers, linked retailer/loyalty account information, and associated purchase history from those accounts. 
• Location data: General location (city, zip code) and precise geolocation if you enable it on your mobile device.
• Device information: Device identifiers, settings, make/model, OS, and how you use the app on that device.
• Cookies and tracking technologies: Data collected via cookies, pixel tags, web beacons, and similar tools to track your activity on Ibotta’s services and in emails.
• Browser extension browsing history (if you install it): Related to cashback/in-stock tracking features.
• Third-party linked accounts: Information from third parties you connect, combined with Ibotta’s own data.
• Security tools: Ibotta uses Invisible CAPTCHA (Google’s service) to collect background data for security purposes.

For Washington State residents, the company also notes the special handling of “Consumer Health Data” as defined by state law.

Ibotta says it does not collect payment card numbers, bank account information, or pharmacy account information.

The company may use this data to run, maintain, and improve the services, as well as for customer support, security, fraud prevention, and rewards audits. Plus, for offer fulfillment, eligibility checks, personalization, targeting, and communications. 

It may also use aggregated or de-identified data for any purpose.

Ibotta may infer frequent places you visit and (if you opt in) use background location to send “near store” notifications and support advertising.

The company may share your personal information with retail and brand partners, advertisers, data platforms, service providers, and analytics companies like Google Analytics. 

It states that it “sells” and “shares” personal information as those terms are defined under California law, including identifiers, purchase history, device IDs, and location data.

Users have certain privacy rights. For example, you can opt out of the sale or sharing of your data through their Preference Center or by enabling Global Privacy Control in your browser. 

You can also manage your email preferences, turn off location tracking, and unsubscribe from SMS by texting “STOP.” 

California residents (and residents of several other states) have rights to access, delete, correct, and opt out of targeted advertising.

Ibotta says it retains personal information for up to 7 years from your last interaction.

So, Should You Use Ibotta?

Depends.

If you shop frequently at participating stores and don’t mind the data collection, Ibotta can be a decent way to earn a bit of extra cash. 

How to Use Ibotta Safely and Privately

• Protect your Ibotta account. Use a strong, unique password for your Ibotta account and don’t reuse passwords from other services.
• Turn on two-step verification. Doing so reduces the risk of account takeover.
• Consider whether you want to link your social accounts. Only connect social media accounts if you’re comfortable sharing details like your name, email, birth date, and friend list.
• Review and limit the personal profile information you provide. Especially demographic and lifestyle details used for offer targeting.
• Use a masked email address. With a masked email, you can reduce spam and marketing emails tied to shopping and offer activity, and limit how much your real email is connected to purchase history, receipts, and tracking data. If the email address is ever spammed or exposed, you can always turn it off. If you’re a DeleteMe customer, you can use our masked email address. 
• Use a masked phone number. A masked phone number helps you reduce spam and long-term exposure since phone numbers are difficult to change once shared. If you’re a DeleteMe customer, you can use our masked phone number. 
• Be mindful that your searches, shopping lists, and checked-off items are tracked. So avoid entering sensitive or unnecessary information.
• Double-check receipts before submitting them. They may contain extra personal or payment-related details.
• Consider whether you want to link loyalty or retailer accounts. Link loyalty or retailer accounts only if you’re comfortable sharing both past and future purchase history from those accounts.
• Turn off location access on mobile. Unless you specifically need Ibotta’s location-based features.
• Cash out your Ibotta balance periodically. This reduces the risk that you’ll lose your cashback if your Ibotta account is suspended or deactivated.
• Keep screenshots or copies of the receipts you’ve submitted, as well as any offer confirmations. These can come in handy if you need to dispute missing cashback. 
• Turn on Global Privacy Control (GPC) in your browser. Doing so automatically signals opt-out preferences under applicable privacy laws.
• Monitor your account for inactivity fees. Ibotta will not deduct fees from your account in the first six months after you sign up. However, if you do not redeem an offer or get credit for a referral within 180 days after that, Ibotta will deduct an account maintenance fee from your account.