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.
Block, Inc. will pay a total of $45 million to 46 states as part of a settlement addressing allegations of insufficient security measures within Cash App. State attorneys general emphasized that the company failed to provide users with promised protections, contributing to vulnerabilities and fraud.
Investigations revealed that Block misrepresented Cash App's security capabilities, misleading users to believe they had bank-level protections. Furthermore, the app lacked crucial customer support, leading users to fall prey to scams through misleading phone numbers while searching for help.
As part of the settlement, Block must implement a 24/7 live support system, with at least 13.5 hours per day covered by real personnel. This is part of a broader effort to enhance customer safety measures and prevent future scams. Additionally, the consent judgment reaffirms a prior federal agreement for Block to distribute potentially up to $120 million to states.
Cash App, founded by Jack Dorsey in 2009, has faced scrutiny over its security policies and customer support shortcomings. This settlement follows multiple reports highlighting the risks posed to users due to inadequate fraud prevention measures and user verification processes.
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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.