Cash App parent Block to pay $45M to settle states’ fraud protection claims

Cash App settlement overview:

• Who: Block Inc., the parent company of Cash App, agreed to a multistate settlement with 46 state attorneys general.
• Why: The states alleged Block misled consumers about Cash App’s safety and failed to adequately protect users from fraud.
• Where: The Cash App settlement was filed in state court in Oregon, with parallel consent judgments entered in participating states.

Block agreed to pay $45 million to resolve allegations by 46 states that it misled consumers about the safety of Cash App and failed to provide the fraud protections it promised.

The multistate settlement resolves an investigation led by the attorneys general of Oregon and Texas into Block’s consumer protection practices involving Cash App, a mobile payment platform used to send, receive and store money.

According to the settlement, the states alleged Block made representations about Cash App’s safety, refund protections and customer support while allegedly failing to adequately protect consumers from fraud and to comply with certain legal requirements. 

The consent judgment also addresses allegations related to account locks, account suspensions, fraud communications and compliance with the Electronic Fund Transfer Act and Regulation E.

Oregon Attorney General Dan Rayfield said the investigation found that Block assured consumers their money was safe while allegedly failing to deliver the fraud protections and dispute resolution it advertised.

“When things went wrong, Block left them with nowhere to turn,” Rayfield said, as reported by Law360.

Block denies any wrongdoing and stated the agreement resolves “a previously disclosed legacy matter that primarily relates to historical aspects of our business.”

The company said it has since made significant investments in consumer protection, customer service and compliance.

Cash App settlement to require enhanced fraud protections

Under the Cash App settlement, Block will pay $45 million in civil penalties, which will be distributed among the participating states.

In addition to the monetary payment, Block agreed to maintain and implement a series of consumer protection measures related to Cash App.

The consent judgment requires the company to maintain customer support for fraud complaints, provide 24-hour telephone support and educate consumers about common fraud schemes.

According to the consent judgment, Block does not admit liability or any violation of law by entering into the agreement.

The settlement resolves allegations concerning conduct occurring before the agreement’s July 8, 2026, effective date.

A Block spokesperson said the company shares the commitment of the attorneys general to addressing fraud and will continue investing in operations and technology designed to promote a safer financial ecosystem.

The participating states include New York, California, Florida, Texas, Illinois, Pennsylvania, Washington and 39 other states.

Last year, Block agreed to pay $12.5 million to settle a class action lawsuit alleging it sent unsolicited text messages through Cash App’s “Invite Friends” referral program.

What do you think about this Cash App settlement? Let us know in the comments.

The states are represented by their respective attorneys general.

The Cash App settlement is State of Oregon ex rel. Dan Rayfield, Attorney General for the State of Oregon v. Block Inc., Case No. ORS 20.140, in the Circuit Court of the State of Oregon for Multnomah County.

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