Block to Pay $45 Million to Settle Cash App Security Allegations
Summary
Block agreed to pay $45 million to settle allegations from 46 states that Cash App misled users about security and left them vulnerable to fraud. The agreement requires 24-hour live support, including coverage by a real person.
Key points
- Attorneys general from 46 states said Cash App misrepresented its security and failed to provide promised fraud protections.
- Investigators cited weak verification, including signup without a Social Security number or date of birth and no limit on accounts per person.
- The app lacked phone support until 2021, leading some users to call fake support numbers found online, according to the article.
- The agreement requires Block to maintain 24-hour live support, with at least 13.5 hours covered by a real person.
- The settlement reaffirms a related 2025 federal order for Block to distribute between $75 million and $120 million to states.
Article Details
- Event Type
- Multistate settlement over allegations that Cash App misled users about its security and failed to protect or assist fraud victims.
- Impact
- Block, Inc. agreed to pay $45 million to 46 states. The agreement requires 24-hour live support, including at least 13.5 hours per day with a real person, and reaffirms a related federal order requiring Block to distribute between $75 million and $120 million to states. Investigators said weak verification and the lack of phone support left users vulnerable to scams, including fake customer-support numbers.
People
Ken PaxtonTexas Attorney General; said lax verification, the absence of phone support, and deceptive promotions exposed users to scammers.Letitia JamesNew York Attorney General; announced the agreement and said Block failed to help users who were scammed and misled consumers about Cash App’s safety.