Key Takeaways
Block will pay $45 million to 46 states to resolve claims that Cash App misled users about safety and failed to investigate and refund fraud on the platform.
Cash App must now offer live phone support at least 13.5 hours a day, drop misleading safety claims, and end marketing practices that made fraud easier.
The settlement also requires Block to honor a CFPB order paying at least $75 million and up to $120 million directly to harmed consumers.
Attorneys general from 46 states announced a $45 million settlement with Block, the company behind Cash App, closing a multistate investigation into how one of the country's most popular payment apps handled fraud. California Attorney General Rob Bonta said Block told customers their money was as safe as in a bank and then "left its customers high and dry when things went wrong."
What the states found inside Cash App
The investigation found a sign-up process with minimal identity checks that let scammers open account after account. For years Cash App had no live phone support even though it told customers to call, so users searching for a number often reached fake 1-800 lines run by scammers who then took over their accounts. Block kept running Cash App Fridays, a promotion asking users to post their $cashtag publicly, after learning fraudsters used it to find targets. And the company pushed direct deposit hardest at unbanked and underbanked customers, the people most likely to rely on Cash App as their only financial account.
What changes for Cash App users
Block, which denied wrongdoing, agreed to staff live phone support at least 13.5 hours a day and live chat at least 18, stop misleading claims about safety, discontinue marketing known to increase fraud, and investigate and refund unauthorized transactions as the law already requires. The deal also locks in consumer redress from Block's January 2025 CFPB settlement, at least $75 million and up to $120 million, a backstop states added after several federal consent orders were terminated this year. California receives $2.9 million. Hawaii, Missouri, South Carolina and Wyoming did not join.
The case extends the accountability lane this newsroom has tracked from the DOJ's Huione Group seizure to the $20 million BONK DAO governance attack. When a platform holds people's money, the protections have to be real.
People Also Ask
Is Cash App safe to use?
The settlement requires Block to maintain real fraud protections on Cash App, including live customer support, fraud education, and refunds for unauthorized transactions. Payment app balances still may not carry the same protections as bank accounts, so users should treat them differently.
Will Cash App users get refunds?
Yes. Under a separate CFPB settlement that this deal requires Block to honor, the company must pay at least $75 million and up to $120 million to eligible consumers. Details are available at cashappcfpbsettlement.com.
Why did Block pay $45 million to the states?
A 46-state investigation found Block misled users about Cash App's safety, made fraud easier through weak identity checks and risky promotions, and failed to investigate and refund fraud as required by law.
Which states were not part of the Cash App settlement?
Hawaii, Missouri, South Carolina and Wyoming did not participate in the multistate settlement. The other 46 states split the $45 million payment, with California receiving $2.9 million.