Block to pay $45 million over Cash App fraud claims

Block agreed to pay $45 million to settle claims from 46 U.S. states that Cash App misled users about the level of bank-like fraud protection it offered and left them exposed when accounts were compromised. The deal, announced Wednesday, July 8, also requires Block to improve fraud prevention and customer service, including adding live support for the mobile payments app.

Cash App was marketed in a way that suggested stronger detection and protection than users actually received. The account setup process was easy to exploit because people could create accounts without a Social Security number or date of birth, and one person could open multiple accounts without a meaningful limit. The absence of an official customer support phone line made the problem worse, because locked-out users often ended up calling fake support numbers set up by scammers.

Pennsylvania Attorney General Dave Sunday said the settlement would strengthen consumer protections and improve the ability to report and resolve fraud. Pennsylvania said it will receive $1,137,695.72 for future public protection and educational purposes. Colorado Attorney General Phil Weiser said Colorado will receive $1,663,539, while California Attorney General Rob Bonta said California will receive $2.9 million.

Block denied wrongdoing in the case, but it accepted the overhaul after federal regulators had already forced the company to account for Cash App’s fraud failures. In January 2025, the Consumer Financial Protection Bureau ordered Block to pay up to $120 million in consumer redress and a $55 million civil money penalty, finding the company had failed for years to provide live telephone agents, allowed fake customer service lines to proliferate and used weak fraud and dispute-resolution practices. The bureau said Cash App had more than 56 million accounts and generated about $4 billion of Block’s $7.5 billion in gross profit in 2023.

Pennsylvania said Cash App had been promoted to unbanked and underbanked users, including through direct deposit of paychecks and government benefits. California said the new agreement prevents Block from evading the consumer-redress obligations tied to the earlier CFPB order, which had called for at least $75 million and up to $120 million in relief.