Block settles $45M Cash App fraud and security claims

Block will pay $45M to settle claims it misled Cash App users about security and failed to protect them from fraud. The company must improve fraud protections and customer support.

Block, the company behind Cash App, has agreed to pay $45 million to settle allegations from nearly every U.S. state that it misled users about the app’s security and failed to protect them from fraud. Regulators claimed Block marketed Cash App as offering protections similar to traditional banks, but the platform lacked consistent fraud detection and did not provide an effective customer complaint hotline. Investigations found that Block targeted unbanked and underbanked individuals, failed to warn users as fraud increased, and ran promotions like “Cash App Friday” that exposed users to scams. As part of the settlement, Block must implement operational changes, including 24/7 live customer support and ending misleading security claims. The $45 million will be distributed among the states, while separate consumer refunds between $75 million and $120 million have already been ordered by the CFPB. Block denies wrongdoing and says it has since improved consumer protection and compliance measures.