Block to pay $45 million in multistate Cash App security settlement

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Block Cash App security settlement

Highlights

Block agreed to pay $45 million in a multistate settlement after regulators alleged inadequate consumer protections and misleading security claims for Cash App.
State attorneys general said Block lacked consistent fraud detection, failed to warn users about rising fraud, and continued with risky promotions despite known scams targeting Cash App users.
The settlement adds regulatory and operational pressure on Block's Cash App, which serves tens of millions of Americans for banking and credit needs.

Settlement terms and regulator allegations

As reported by The Block, citing the New York Attorney General's Office, the settlement requires Block to pay $45 million after prosecutors said the company did not adequately protect Cash App customers from fraud and misled users about the app's security.

Regulators said Block presented Cash App as offering protections comparable to those of a traditional bank, creating the impression that customer funds were protected in the same way. They also alleged the company lacked a consistent fraud detection system and failed to maintain a working customer hotline for reporting scams.

New York Attorney General Letitia James said users were promised a safe and secure platform but were instead exposed to widespread fraud. Attorneys general also alleged that Block knew fraud was increasing, did not warn users and shifted its focus toward marketing, including among unbanked and underbanked customers who in some cases used Cash App as their primary financial account.

The states also criticized the company's 'Cash App Friday' social media promotion, saying fraudsters contacted participants, falsely claimed they had won prizes and tricked them into surrendering login information. Investigators said Block was aware of those scams but continued the promotion and trained staff to expect complaints from defrauded users.

Operational impact and company response

For Block, the settlement adds regulatory and operational pressure on Cash App, a core consumer finance business that serves tens of millions of Americans using the platform for banking and credit-related needs.

In an emailed statement, a Block spokesperson said the agreement resolves a previously disclosed legacy matter tied mainly to historical aspects of the business. The spokesperson said Cash App has made significant investments in consumer protection, customer service and compliance, and that the company continues to invest in operations and technology to support a safer financial ecosystem.

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