Cash App parent company to pay $45 million in multistate fraud settlement, Va. AG says

Block, Inc., the parent company of Cash App, has reached a $45 million multistate settlement to resolve allegations that it failed to protect users from scams and misled them regarding the security of their funds. Virginia is one of 46 states participating in the settlement, with Attorney General Jay Jones noting that the funds will support consumer protection efforts. The investigation, led by Oregon and Texas, found that Block prioritized rapid user growth over security, leaving many customers without adequate support when accounts were compromised.

Key issues identified by investigators included a low-friction sign-up process that facilitated scammer accounts, a lack of telephone customer support that led users to fraudulent help lines, and marketing campaigns like "Cash App Fridays" that scammers exploited. Additionally, the company was accused of delaying fraud investigations and failing to provide required refunds.

As part of the settlement, Block must overhaul its customer service, providing expanded access to human representatives via phone and live chat. The company also agreed to stop making misleading security claims, discontinue high-risk marketing practices, and improve fraud education. While Block denied any wrongdoing and stated the settlement addresses historical practices, the agreement follows a separate federal action by the Consumer Financial Protection Bureau regarding similar issues.

(Source：Wtop News)