In a major development, Cash App, the peer-to-peer payment platform owned by Block, Inc., has agreed to a $15 million class action settlement following a series of allegations involving unauthorized transactions, fraudulent activity, and account freezes.
The settlement comes as part of a broader trend of increasing scrutiny on financial technology companies over customer protection and data security issues.
What Led to the Settlement?
The legal action against Cash App stems from several incidents. In 2022, the company acknowledged that a former employee had accessed user data without authorization. Then in 2023, it was revealed that a third party gained access to accounts using recycled phone numbers—raising questions about the platform’s security measures.
Cash App was accused of lacking the safeguards necessary to prevent unauthorized access and failing to offer timely support or solutions for affected users. Millions of users were potentially exposed to data leaks and privacy violations, prompting the settlement agreement.
Who Is Eligible for Compensation?
Under the terms of the settlement, Cash App users in the U.S. who experienced issues between August 2018 and August 2024 may be eligible for compensation. This includes:
- Unauthorized account access or personal data breaches
- Fraudulent or illegal transactions
- Unjustified account freezes or customer service failures
Eligible users may receive up to $2,500. Additionally, claimants can request reimbursement for up to 3 hours of lost time at $25 per hour, and submit documentation for financial losses caused by fraudulent transactions.
Required Documentation
To qualify, users must have submitted their claims by the November 18, 2024 deadline, along with:
- Emails or messages showing they contacted Cash App about the issue
- Police reports or other evidence of fraudulent activity
- Any proof that supports the unauthorized access or account issue
Only those whose claims are accepted will receive compensation.
When Will Payments Be Made?
The court officially approved the settlement on January 13, 2024, but a specific payment date has not yet been confirmed. Payments are expected to begin by the end of 2025, either by direct deposit or check.
Claimants are encouraged to:
- Double-check their preferred payment method
- Monitor their email and mailbox
- Be patient, as payments can take up to 5 days to process once issued
To check the status of a claim, users can visit the official settlement website: Cash App Security Settlement.
A Larger Industry Wake-Up Call
This case is one of many currently putting pressure on fintech platforms to prioritize user security and account management transparency. As digital financial services continue to grow, so too does the expectation that companies will protect user data and handle support issues responsibly.