Block Pays $45 Million to 46 States Over Cash App Fraud Failures
Updated
Updated · Newsday · Jul 8
Block Pays $45 Million to 46 States Over Cash App Fraud Failures
3 articles · Updated · Newsday · Jul 8
Summary
$45 million will be paid by Block to settle claims from 46 states that Cash App failed to protect users from scams and unauthorized transactions; New York's share is $1.6 million.
State officials said Block lacked adequate fraud controls, let scam accounts proliferate, and for years offered no hotline for reporting scams while marketing Cash App as a safe way to send money.
The settlement requires customer reimbursement for unauthorized charges and mandates stronger support, including a 24-hour hotline staffed by people for 14 hours a day and live chat for 18 hours.
Block said it has already invested heavily in consumer protection and compliance, while the broader deal also includes up to $120 million in consumer restitution.