Cash App Users Get New Fraud Help After $45M Settlement
Writer: Lucy Lazarony
Editor: Adam West
Reviewer: Ashley Fricker
Key Takeaways
- Block, Inc. has agreed to pay $45 million for allegedly misleading Cash App users and not protecting them from fraud.
- Block allegedly misled Cash App users with false advertising that implied Cash App worked like a bank with the same protections as a bank.
- As part of the settlement, Block must offer live customer service phone support at least 13.5 hours a day and live chat at least 18 hours a day.
Cash App promised users security and fraud protection. But a bipartisan coalition of attorneys general says the payment app often failed to give scam victims the help it promised.
Block, Inc., the company behind Cash App, has agreed to pay $45 million to resolve allegations that it misled users about the app’s safety, failed to provide promised fraud protections, and allowed scams to grow on the platform.
The settlement, secured by New York Attorney General Letitia James and 45 other attorneys general, requires Block to strengthen customer support, stop misleading marketing, and improve how Cash App handles fraud complaints and unauthorized transactions.
“For years, Cash App users lost money to costly scams because Block cared more about profits than protecting its users.” — New York AG Letitia James
Block denied wrongdoing and did not admit liability.
“For years, Cash App users lost money to costly scams because Block cared more about profits than protecting its users,” James said in a press release. “I am proud that this bipartisan group of attorneys general came together to hold Bock accountable and ensure Cash App protects its users’ funds.”
What the Investigation Found About Block
Here are some details from the investigation by James and the other attorneys general. According to the attorneys general, Block misled Cash App users with advertising that falsely implied Cash App worked like a bank and offered the same protections banks provide for customer funds.
Block also claimed to have “cutting edge” fraud detection technology, even though the company allegedly lacked a consistent fraud detection system and did not provide a fraud hotline for Cash App users to report scams.
James and the other attorneys general also allege Block knew fraud on its Cash App platform was rising sharply, but instead of warning users or strengthening protections, Block doubled down on marketing efforts for Cash App.
A Word from Block
A Block spokesperson said the agreement resolves a legacy matter tied largely to past practices.
“We’ve reached an agreement that resolves a previously disclosed legacy matter that primarily relates to historical aspects of our business.
“Cash App has made significant investments in consumer protection, customer service, and compliance in order to safeguard and serve the tens of millions of Americans who rely on Cash App to meet their banking and credit needs.
“We share the commitment of the attorneys general to addressing industry challenges and continue to invest in operations and technology to promote a safe and healthy financial ecosystem.”
What Block Must Do Next
According to the settlement, Block must implement changes intended to better protect Cash App users from fraud, ensure Cash App users have access to live customer service agents, and stop all misleading marketing. Block also must pay $1.6 million in penalties in New York.
James and the other attorneys general were specific about what actions Block needs to take. Here are a few of the key requirements of the settlement.
Key Changes Required Under the Cash App Settlement
| Requirement | What Cash App Must Do | Why It Matters to Users |
|---|---|---|
| Customer support | Offer live phone support 13.5 hours/day and live chat 18 hours/day | Easier to reach a real person after fraud or account issues |
| Fraud investigations | Investigate fraud complaints and unauthorized transactions | Clearer path to dispute suspicious activity |
| Consumer reimbursement | Reimburse unauthorized transactions when required by law | May help eligible users recover lost money |
| Marketing | Stop misleading claims about safety and fraud protections | Sets clearer expectations about user protections |
| Consumer education | Educate users about common scams and fraud tactics | Helps users spot and avoid payment scams |
Block must maintain customer support services that can resolve fraud complaints, account lockouts, and other problems, and offer live phone support at least 13.5 hours a day and live chat at least 18 hours a day.
Block must stop false or misleading claims about Cash App’s safety and how it protects users from fraud and discontinue marketing practices known to increase fraud on the platform.
Block must educate consumers about common types of fraud and fulfill its legal obligation to investigate fraud claims and reimburse users for unauthorized transactions.
