Block Inc., the parent company of the popular payment platform Cash App, has agreed to a $45 million multistate settlement to resolve allegations that it failed to protect users from fraud and misled customers regarding the security of their funds. The agreement involves 46 states and concludes an investigation led by Oregon and Texas.
Virginia Attorney General Jay Jones announced that the commonwealth will receive approximately $845,500 from the settlement. Investigators determined that Block allowed a rapid expansion of its user base while failing to implement adequate fraud safeguards. The probe highlighted that the company’s limited identity verification process and lack of accessible customer support enabled scammers to exploit the platform, particularly through fake support lines and social media promotions like “Cash App Fridays.”
Under the terms of the settlement, Block must overhaul its operations. The company is now required to provide 24-hour customer support, including live phone access for at least 13.5 hours daily and live chat for 18 hours. Furthermore, Block must cease misleading marketing practices and comply with federal requirements for investigating unauthorized transactions.
While Block denied any wrongdoing and stated that the settlement resolves claims regarding historical practices, the company emphasized that it has already invested heavily in fraud detection and compliance. This settlement follows previous action by the Consumer Financial Protection Bureau, which separately ordered the company to distribute up to $120 million to consumers for similar service failures.