Block, $45M settlement with 46 states over Cash App fraud
Original: Block reaches $45M settlement with 46 states over Cash App fraud probe
Why This Matters
Fintech platforms face growing regulatory scrutiny as more Americans use them as primary banking services.
Block agreed to pay $45 million to settle fraud-related claims brought by 46 U.S. states, alleging that its Cash App failed to adequately protect users from fraud and misled users about bank-like protections, including advanced fraud detection.
Block has reached a $45 million settlement with 46 U.S. states over allegations that its peer-to-peer payments app, Cash App, failed to adequately protect users from fraud. State attorneys general alleged that Block misled users by falsely advertising bank-like protections, including advanced fraud detection. Among the specific issues cited: Cash App allowed account creation without a Social Security number or date of birth, placed no limits on the number of accounts one person could open, and lacked an official customer support phone number — a gap that led users to contact fraudulent support lines operated by scammers. Block denied wrongdoing. The settlement follows earlier action by the Consumer Financial Protection Bureau, which accused Block of similar failures and imposed $175 million in penalties and consumer redress. Under the new agreement, Block will strengthen Cash App's fraud prevention measures and introduce live customer support for users. The settlement was first reported by Reuters.