$45 Million Settlement Announced Over Cash App Deceptive Practices
Block, Inc. will pay $45 million to settle allegations of deceptive practices and inadequate fraud protection for Cash App users.Summary
Virginia Attorney General Jay Jones announced a $45 million multistate settlement with Block, Inc., the parent company of Cash App. The settlement addresses allegations that Block misled consumers regarding the safety of the app and failed to provide promised fraud protections and resolutions. As part of the agreement, Virginia will receive $845,500 to support consumer protection efforts.
Investigations revealed that Block promoted Cash App as a safe alternative to traditional banks, particularly targeting unbanked and underbanked populations, while failing to implement sufficient identity verification or customer support. These failures allowed fraudsters to exploit users through social media promotions and fake support numbers. Furthermore, users often faced long account lockouts and lacked recourse for unauthorized transactions.
Under the settlement terms, Block must implement responsible practices, including providing 24-hour customer support with human availability via phone and live chat. The company is also required to stop misleading safety claims, discontinue marketing practices that increase fraud, and fulfill legal obligations to investigate and reimburse users for unauthorized transactions.
(Source：Hampton Roads Messenger)