Cash App users who lost money to fraud may be eligible for refunds following a settlement between Block, Inc. and attorneys general from 47 states. According to North Carolina Attorney General Jeff Jackson, Block must distribute between $75 million and $120 million to consumers nationwide and pay $45 million to participating states.
Why did Cash App settle with 47 states?
The settlement stems from allegations that Block, Inc. made operational decisions that left users vulnerable to scams. North Carolina Attorney General Jeff Jackson stated that Block failed to provide necessary help to users after fraud occurred.
For years, Cash App lacked phone support, according to state officials. This gap led users to search for help online, where they often encountered fake phone numbers operated by scammers who then drained their accounts. The state alleged Block was aware of this issue but failed to act.
How did “Cash App Fridays” lead to fraud?
A specific social media promotion known as “Cash App Fridays” became a primary target for bad actors. According to Jackson’s office, the promotion encouraged users to publicly post their account identifiers.
Scammers used these public posts to impersonate Cash App and steal login credentials. The state alleged that Block continued the promotion despite knowing these scams were happening.
In a statement, Block, Inc. described the settlement as a resolution to a “previously disclosed legacy matter” relating to historical aspects of the business. The company stated it has since invested in consumer protection, compliance, and customer service.
What changes must Block implement now?
The settlement mandates specific operational changes to prevent future fraud. Block must now provide 24-hour customer support, ensuring a human is available by phone for at least 13.5 hours a day.
Additionally, the company is required to:
- Investigate fraud claims thoroughly.
- Reimburse users for unauthorized transactions.
- Cease misleading users regarding the app’s safety.
“Block told users Cash App was safe, but made it easier for fraud to occur,” Jackson said, noting the settlement aims to return money to customers who trusted the company’s claims.
Comparing the Financial Impact
The settlement creates two distinct pools of funding. One is dedicated to the users, while the other compensates the government entities that pursued the litigation.
| Payment Category | Amount |
|---|---|
| Consumer Refunds (Nationwide) | $75 Million – $120 Million |
| State Payments (47 States) | $45 Million |
Frequently Asked Questions
Who is eligible for a Cash App refund?
Users who lost money to fraud and meet the criteria set by the multi-state settlement may be eligible. Check with your state’s Attorney General’s office for specific claim instructions.
Does Cash App have phone support now?
Under the settlement terms, Block must provide human phone support for at least 13.5 hours a day as part of a 24-hour support system.
What was the main cause of the account drains?
Officials cited the lack of official phone support and the “Cash App Fridays” promotion as key factors that allowed scammers to impersonate the company and steal credentials.
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