AG: Mass. to receive $730,000 from Cash App in alleged deception settlement
Massachusetts will receive $730,000 from a settlement with Block Inc. over allegations that Cash App misled users and failed to prevent fraud.Summary
Massachusetts Attorney General Andrea Campbell announced a $730,000 settlement with Block Inc., the parent company of Cash App, to resolve allegations of deceptive practices. The settlement is part of a larger $45 million multistate agreement involving 46 states. Prosecutors allege that Block misled consumers by implying Cash App offered bank-like protections while failing to implement sufficient security measures to combat rising fraud.
Key issues identified by the Attorney General include minimal identity verification during sign-up, a lack of phone-based customer support, and promotions like "Cash App Fridays" that inadvertently exposed users to scammers. The lack of accessible support led many users to fall victim to fraudulent 1-800 numbers. Furthermore, users often faced long delays in accessing funds due to automated account locks and inadequate investigation of unauthorized transactions.
As part of the settlement, Block is required to implement responsible practices, including ceasing false safety claims, discontinuing high-risk promotions, and educating consumers. The company must also improve customer service by providing 24-hour live support via phone and chat to resolve account lockouts and fraud issues.
(Sourceļ¼Boston)