Michigan gets money in Cash App settlement after fraud losses

Michigan is set to receive $936,540 as part of a $45 million multistate settlement with Block Inc., the parent company of Cash App. The settlement addresses allegations that Cash App used deceptive claims and maintained weak security practices that allowed fraudsters to easily create accounts and exploit users. Michigan Attorney General Dana Nessel noted that the company's frictionless sign-up process and lack of customer service for years made it easier for criminals to operate.

Under the agreement, Block Inc. has committed to maintaining stronger consumer safeguards and improving customer support. This includes providing 24-hour support with human availability via phone and live chat to resolve fraud complaints and account issues. While Block denied any wrongdoing, stating the settlement was for the purpose of concluding the matter, the company has agreed to stop making false claims regarding the app's safety and to fulfill legal obligations regarding unauthorized transaction reimbursements.

This settlement follows a separate agreement with the Consumer Financial Protection Bureau (CFPB) regarding historical customer service and dispute practices. As part of that broader effort, Block is distributing between $75 million and $120 million to compensate affected consumers nationwide. Eligible customers will receive restitution checks automatically, and officials have cautioned that these checks are legitimate and not scams.

(Source：Detroit Free Press)