CRIME & LAW

Multistate Cash App Settlement Sends Millions To States

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CHARLESTON, West Virginia. This week West Virginia Attorney General JB McCuskey announced the state will receive $363,498.65 as part of a $45 million multistate settlement with Block Inc., owner of Cash App, resolving allegations that the company misled users about safety, failed to protect consumers from fraud, and did not provide promised fraud-resolution services. Baton Rouge and Hartford reports this week likewise confirmed that Louisiana will receive over $550,000 and Connecticut $1.5 million under the multistate agreement; 46 states participated. Attorney generals emphasized changes to consumer protections and cited minimal identity verification and years without phone support as factors leading to increased fraud and the settlement.

Prepared by Emily Rhodes and reviewed by editorial team.

Timeline of Events

Cash App implemented fast sign-up with minimal identity verification.
Reports and instances of fraud on the platform increased over time.
State attorneys general investigated Block Inc.’s consumer-protection and support practices.
46 states negotiated and reached a $45 million multistate settlement with Block Inc.
Individual states announced their settlement shares and consumer-protection measures.

Why This Matters to You

This settlement directly impacts Cash App users. If you've been a victim of fraud, the company's promised changes may improve your protection. It's a good time to review your app settings and ensure your identity verification is robust.

The Bottom Line

Block Inc., Cash App's parent company, is paying millions for not adequately protecting its users. It's a reminder that digital platforms can have real-world consequences. Check your apps' safety measures. Worth forwarding if you know a Cash App user.