Block Pays $45 Million to Settle Cash App Fraud Protection Claims

Q: Block paid a $45M fine, but will Cash App users actually get their stolen money back?

Not from the $45 million settlement itself. That money goes to the states and is mainly tied to penalties and required changes at Cash App, such as stronger fraud controls, better investigations and expanded live customer support. Cash App users may still get money back through a separate restitution program. Regulators say Block previously agreed, in a CFPB-related settlement, to pay roughly $75 million to $120 million to consumers harmed by fraud and poor dispute handling. The new multistate deal reinforces that obligation and gives states another way to enforce it if Block falls short. Whether a user gets repaid depends on the type of loss. The strongest cases are generally unauthorized transactions, account lockouts, or situations where Cash App allegedly failed to provide legally required error-resolution and reimbursement under electronic funds transfer rules. People who were tricked into sending money themselves may have a harder time, because many scam payments are treated as “authorized” even if induced by fraud. Some payments have reportedly already begun through a settlement administrator, and eligible consumers generally do not need to file a claim if they were identified from Block’s records. Users can check information through the settlement site, cashappcfpbsettlement.com, or by calling 888-832-1301. So the practical answer is: some users should get reimbursed, but not from the $45 million pot, and not every scam victim will qualify.

3 articles · Updated · St. George News · Jul 15

$45 million will be paid by Block in a multistate settlement over allegations it failed to protect Cash App users from fraud.
Utah's Division of Consumer Protection, represented by the state attorney general's office, said the case centered on claims that Block misled consumers about Cash App's safety.
Regulators also alleged the company failed to deliver the fraud protection and dispute resolution it had promised users and was required by law to provide.
The settlement closes claims that, when fraud occurred on the peer-to-peer payments platform, Block did not adequately help affected customers.