Cash App’s parent company settles $45M fraud protection lawsuit; Minnesota to get small slice

Cash App’s parent company has agreed to a $45 million multistate settlement to resolve allegations that it misled people about the app’s safety, failed to protect users from fraud and did not provide the fraud help required by law.

Minnesota will get approximately $639,000 from the settlement (roughly 1.5%), according to the office of Attorney General Keith Ellison.

State officials say Block aggressively marketed the app as a safe primary account to unbanked individuals while knowing that internal fraud rates were spiking.

“Block cared more about making money than making sure Cash App was safe and secure for users, and real people suffered as a result,” said Ellison.

Ellison’s office pointed to the company’s lack of live phone support for victims who were locked out of their funds for weeks with no customer support.

Under the settlement, Block agreed to keep customer support that can handle fraud complaints while offering live support to customers 24 hours a day. Block has also agreed to distribute up to $120 million in consumer restitution through the Consumer Financial Protection Bureau.

A Block spokesperson sent KSTP the following statement:

“We’ve reached an agreement that resolves a previously disclosed legacy matter that primarily relates to historical aspects of our business. Cash App has made significant investments in consumer protection, customer service, and compliance in order to safeguard and serve the tens of millions of Americans who rely on Cash App to meet their banking and credit needs. We share the commitment of the attorneys general to addressing industry challenges and continue to invest in operations and technology to promote a safe and healthy financial ecosystem.”

Oregon and Texas led the investigation.
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