● Covered by 2 sources · 2 reportsMedium impact
Block Inc. Settles for $45M Over Cash App Security Allegations with 46 States
Key points
- Block to pay $45M settlement with 46 states over Cash App security issues.
- Cash App accused of not protecting users from fraud as promised.
- Settlement includes round-the-clock customer support requirement.
- Users allegedly misled about protections similar to banks.
- Block denies wrongdoing but agrees to settlement.
Overview
Block, Inc., the company behind Cash App, will pay $45 million as part of a settlement with 46 U.S. states. This agreement resolves allegations that the company misled users about the security features of its popular payment application, leaving them vulnerable to fraud.
Details of Allegations
State attorneys general claimed that Cash App was promoted with assurances of bank-like fraud protections, which were not provided. They pointed out that users could open accounts without a Social Security number or date of birth and there were no limits on the number of accounts, facilitating potential scams.
Settlement Requirements
As part of the settlement, Block will provide 24/7 customer support to address the shortcomings highlighted by the states, such as the absence of an official customer service phone line, which led users to unreliable third-party solutions that were exploited by scammers.
Context and Implications
The case underscores ongoing scrutiny from regulators concerning the operations of fintech applications like Cash App. This action is among multiple efforts to ensure such apps adhere to legal consumer protection standards, amidst the growing reliance of Americans on these platforms for financial transactions.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Block, the parent company of Cash App, will pay $45 million to settle claims from 46 states regarding inadequate user fraud protection. The settlement follows accusations that Cash App misled users about fraud protections and allowed exploitation by scammers due to insufficient account verification measures.
Block, Inc., the owner of Cash App, will pay $45 million to settle allegations of misleading users about security, exposing them to scams. The settlement includes a requirement for 24/7 customer support and addresses prior failures in consumer protection.