Block to Pay $255 Million for Cash App Fraud and Security Failures

The settlements include $120 million in consumer refunds, $55 million in federal penalties, and $80 million in state fines over inadequate fraud protections and customer service practices.

The Consumer Financial Protection Bureau (CFPB) ordered Block, the parent company of Cash App, to pay $175 million for failing to protect users from fraud and mishandling customer complaints.
Block will refund $120 million to consumers impacted by fraudulent transactions, unauthorized account freezes, and incomplete investigations, with no action required by affected users to claim refunds.
The CFPB found that Cash App's customer service was inaccessible and misleading, often directing users to banks for fraud disputes, which were later denied by Block.
In a separate settlement with 48 state regulators, Block agreed to pay $80 million for violations of anti-money laundering and Bank Secrecy Act requirements.
Block has pledged to improve its compliance and customer service systems, including implementing 24/7 live support and enhancing fraud detection measures.

SFGATE

San Francisco Chronicle

Portland Press Herald