Texas Regulators Securing $45,000,000 Settlement with Cash App Over Fraud Claims
Texas regulators secured a $45 million settlement with Cash App over fraud and misleading security claims.Summary
Texas regulators announced a multistate settlement with Block Inc the company behind Cash App for 45 million dollars. The settlement resolves allegations that the app misrepresented its security and support services while fraud increased and protections were inadequate.
The investigation found that Cash App marketed itself as a safe banking alternative despite lacking phone support for years and using lax verification standards. Plaintiffs said the company delayed fraud investigations imposed unwarranted account lockouts and ran deceptive social media promotions that left users exposed to scammers.
Under the agreement Block Inc must provide 24 hour customer support stop deceptive marketing and fulfill legal obligations to investigate and reimburse certain losses. Forty six states participated in the investigation and a restitution program will compensate victims of unauthorized transactions.
(Source：The Daily Hodl)