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Cash App owner hit with $45 million security settlement

The settlement will be paid out over 46 states, as the app is accused of not properly security personal information or providing a way to contact customer support. ©Image Credit: Unsplash / Mariia Shalabaieva

The owner of Cash App has been hit with a massive settlement after facing allegations about the security of customer data. The $45 million settlement will be paid out across dozens of states to resolve allegations that the app misled users about its security, exposing them to fraud.

App promised users the same protections as banks

The bipartisan agreement with Block, Inc., was announced by state attorneys general from 46 states who said Cash App had incorrectly promised its customers the same level of security and protections as banks offer.

“Lax verification standards, a years-long absence of phone support, and deceptive social media promotions left users exposed to scammers,” said Texas Attorney General Ken Paxton.

“Nevertheless, Cash App delayed internal fraud investigations and set unwarranted account lockouts, which left victims with no way to recover stolen funds,” said Paxton.

Settlement will pay out differing amounts across states

Because the settlement is being split among dozens of states, individual payouts vary. Texas will get $5 million, and New York will get $1.6 million. Smaller states will receive payouts less than $1 million.

The consent judgment in New York also requires Block to deliver live support 24 hours a day, with at least 13 hours and 30 minutes covered by a real person.

In January 2025, there was a related federal agreement for Block to pay out between $75 million and $120 million related to a consent order from the Consumer Financial Protection Bureau.

A whole list of issues

It wasn't just one issue that Cash App was accused of; rather, it was a whole list of them.

The app didn't ask for a date of birth or Social Security number when creating an account, which meant one person could open several accounts. That opened the door to a network of scam accounts.

Also, there wasn't a phone number listed for customer support. When customers searched online for a number, they ended up calling fake numbers run by scammers. Block allegedly knew about this issue and failed to warn people.

Customers beware

This is a great example of why you need to be wary of what apps you use to send money. Your personal data could be at risk.

Source: The Record

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