Block reaches $45M settlement with 46 states over Cash App fraud probe
Block has agreed to pay $45 million to settle claims by 46 U.S. states that its Cash App failed to protect users from fraud. The states alleged Block misled users by advertising bank-like protections.
Payment technology company Block has agreed to a $45 million settlement with 46 U.S. states to resolve complaints regarding security flaws in its popular payment app, Cash App. State attorneys general alleged that Block misled users by claiming Cash App offered bank-like protections, including advanced fraud detection. Block denied any wrongdoing.
According to the states, Cash App allowed users to create accounts without a Social Security number or date of birth and did not limit the number of accounts a person could open, making it easier for scammers to exploit the platform. Additionally, because Cash App did not provide an official customer support phone number, many users who were locked out of their accounts turned to fake customer service numbers operated by scammers.
This settlement is the latest chapter in regulatory scrutiny of Cash App's business practices. Previously, the Consumer Financial Protection Bureau (CFPB) fined Block $175 million for failing to investigate fraud claims and provide adequate customer service. Under the new agreement, Block will improve Cash App's fraud prevention measures and customer service, including providing live customer support for users of the mobile payments platform. News of the settlement was first reported by Reuters. Block did not immediately respond to a request for comment.
