West Virginia Attorney General J.B. McCuskey
CHARLESTON – West Virginia Attorney General J.B. McCuskey’s office has announced multistate settlement with Block, the company behind the peer-to-peer payment app Cash App.
The $45 million national settlement resolves allegations that Block misled consumers about Cash App's safety, failed to protect users from fraud and didn't provide the fraud protection and resolution it promised and that the law requires. West Virginia will receive $363,498.65.
“Block Inc. put profits before people and that is unacceptable,” McCuskey said. “This settlement holds this company accountable and implements protections for consumers that should have been in place all along.”
Block told users their money was safe and implied Cash App worked like a bank. McCuskey and other AGs said that wasn't true.
As fraud on the platform increased, the AGs said Block continued marketing the app – including pushing direct deposits of paychecks and government benefits to unbanked and underbanked consumers who were especially vulnerable to fraud – without ensuring it could support those users when problems arose.
The AGs say investigators found Block’s own practices made fraud easier. They said Block’s sign-up process was fast and frictionless, requiring minimal identity verification. They also say Cash App offered no phone support for years, leaving users to find fake customer service numbers run by scammers who then drained their accounts.
Additionally, a social media promotion called Cash App Fridays, which encouraged users to publicly post their $cashtag for a chance at a prize, became a tool scammers used to steal login credentials – a scam Block knew about but let continue for years, according to the AGs.
Under the settlement, Block must maintain customer support able to resolve fraud complaints and lockouts, offer live support 24 hours a day – with phone availability at least 13.5 hours a day and live chat at least 18 hours a day, stop misleading claims about Cash App’s safety, discontinue marketing practices known to increase fraud, educate consumers about common scams and fulfill its legal duty to investigate fraud claims and reimburse victims.
The settlement also reaffirms Block’s commitment, under a related CFPB settlement, to distribute between $75 million and $120 million to consumers nationwide. Oregon and Texas led the investigation, securing relief for all 46 participating states.
