Block Inc. reached a $45 million settlement to resolve Cash App fraud allegations. The agreement involves 46 U.S. states that claimed the company failed to protect users. Attorneys general alleged Block misled consumers by implying the app had bank-like security.
The settlement mandates that Block offer 24-hour live customer support via phone and chat. Block must also implement enhanced fraud detection and stricter identity verification. The company will stop using misleading marketing regarding the app's safety.
Investigators found that minimal support and verification allowed scammers to exploit users. The agreement requires Block to improve user education and dispute resolution.