Block Agrees to $45 Million Settlement With 46 States Over Cash App Fraud Claims

Block has agreed to pay $45 million to resolve claims brought by attorneys general from 46 U.S. states over allegations that its peer-to-peer payments platform, Cash App, failed to provide adequate protections against fraud.

According to the states, Block misled consumers by promoting Cash App as offering protections comparable to those provided by banks, including advanced fraud detection capabilities. Block denied any wrongdoing as part of the settlement.

State regulators alleged that Cash App allowed users to create accounts without requiring information such as a Social Security number or date of birth and did not impose limits on the number of accounts a single individual could open. Investigators argued that these practices made it easier for scammers to exploit the platform.

The investigation also found that Cash App did not provide an official customer support telephone number, leading many users who lost access to their accounts to search online for assistance. According to the states, many of those users instead contacted fraudulent customer service numbers, resulting in additional financial losses.

As more Americans rely on fintech applications for everyday banking services, regulators have increased scrutiny of companies operating in the sector. The latest settlement marks another significant regulatory action involving Cash App. It follows prior enforcement by the Consumer Financial Protection Bureau (CFPB), which accused Block of failing to investigate fraud complaints and to provide adequate customer support. That earlier case resulted in $175 million in penalties and consumer redress.

Under the terms of the new agreement, Block has committed to strengthening Cash App’s fraud prevention systems and improving customer service. The company will also introduce live customer support for users of its mobile payments platform as part of the settlement.

Reuters was the first to report news of the agreement.