Block to pay $45 million in 46-state settlement over Cash App fraud claims

Block, the parent company of Cash App, has agreed to pay $45 million to resolve allegations from 46 US states that it misled consumers about the safety of its peer-to-peer payments app and failed to protect users from fraud. The settlement was announced on July 8 by the Oregon Department of Justice, which led the multistate investigation together with Texas, according to reporting by PYMNTS and American Banker.

The states alleged that Block falsely implied Cash App offered protections comparable to a bank, including advanced fraud detection, while the company made it easy for fraudsters to open accounts. According to the investigation, users could sign up with minimal identity verification, without providing a Social Security number or date of birth, and there were no limits on how many accounts one person could open.

Investigators also said Cash App went years without a live customer support phone line and did not warn users that scammers were posting fake support numbers while posing as the company. The states further alleged that Block continued running a social media promotion it knew was being used by fraudsters to trick users into handing over login credentials.

“Cash App told people their money was safe,” Oregon Attorney General Dan Rayfield said in announcing the agreement, adding that many of the affected users had few other banking options.

Under the settlement, Block is required to maintain customer support capable of resolving problems, offer live phone support, stop making false or misleading claims about Cash App’s safety, discontinue marketing practices known to increase fraud, and educate consumers about scams. The agreement also obliges Block to fulfill the terms of a January 2025 consent order with the Consumer Financial Protection Bureau, under which the company is to pay between $75 million and $120 million in restitution to harmed consumers, according to TechCrunch and PYMNTS.

Block denied wrongdoing. In a statement reported by PYMNTS, the company said the settlement “resolves a previously disclosed legacy matter” and pointed to what it described as significant investments in consumer protection, customer service and compliance.

Block trades on the New York Stock Exchange under the ticker XYZ.