Attorney General Ford Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App

Carson City, NV — Today, Nevada Attorney General Aaron D. Ford announced a $45 million multistate settlement with Block, Inc., the company behind the popular peer-to-peer payments app Cash App. The settlement resolves allegations that Block misled consumers about the safety of Cash App; failed to protect users from fraud on the platform; and didn't provide the fraud protection and resolution that it promised and that was required by law. In short, the company failed to help people when things went wrong. Nevada will receive $466,016.49 from the settlement, and the federal Consumer Financial Protection Bureau will distribute money to affected consumers from a $120 million fund agreed to as part of this settlement.

"Block failed to protect users from the scammers it knew were present on its platform," said Attorney General Ford. "This settlement will ensure fraud protection and actual customer service are in place for Cash App users going forward. My office will always stand up for the rights of consumers when companies fail to implement the necessary safeguards to keep their users protected.”

Block told Cash App users their money was safe — implying that the app worked like a bank, with the same protections, which wasn't true. At the same time, Block knew fraud on its platform was rising sharply and instead of warning users or strengthening protections, it doubled down on marketing.

For years, Block actively promoted direct deposits of paychecks and government benefits into Cash App. It made a particular push to reach unbanked and underbanked consumers who would often rely on Cash App as their primary financial account, and who were especially vulnerable to fraud. Block grew its user base without making sure it could support those users when problems arose.

Block's policies made fraud easier in several ways:

• Block's sign-up process was designed to be fast and frictionless, with minimal identity verification. That made it easy for fraudsters to create accounts, not just legitimate users.
• For years, Cash App had no phone support, limiting help to messages through the app or on social media. Users who needed help searched online for a phone number and often ended up calling fake 1-800 numbers run by scammers posing as Cash App. Those scammers would then take over accounts or drain users' other financial accounts. Block knew this was happening and didn't warn users or set up a real phone line until years later.
• Block ran a social media promotion called Cash App Fridays, encouraging users to publicly post their $cashtag — a unique Cash App identifier — for a chance to win a weekly prize. Fraudsters would then contact those users, tell them they'd won, and trick them into handing over their login information. Block knew about these scams and kept running the promotion anyway, for years. 

Block’s failure to provide adequate customer service and to fulfill its promise to protect users from fraud had real consequences for real people. Innocent users who experience automated account locks for suspicious transactions were frequently locked out of their accounts for weeks without a way to access their money. Victims of fraud through the app were often left with no recourse, because delays made it impossible to get stolen money back from scammers and because Block failed to investigate unauthorized transactions and failed to issue refunds when required by law. 

Under the settlement, Block has agreed to implement and maintain responsible practices to resolve these issues, including to:

• Maintain customer support that can resolve fraud complaints, account lockouts, and other problems.
• Offer live support 24 hours a day, with a human available by phone at least 13.5 hours a day and by live chat at least 18 hours a day.
• Stop making false or misleading claims about Cash App's safety and how it protects users from fraud.
• Discontinue marketing practices known to increase fraud on the platform.
• Directly educate consumers about common types of fraud.
• Fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.

The multistate settlement also reaffirms Block’s commitment to distribute between $75 million and $120 million to compensate consumers nationwide as part of a settlement with the CFPB. For additional information on the settlement or to determine if you are entitled to restitution, visit https://www.consumerfinance.gov/enforcement/actions/block-inc/ and https://cashappcfpbsettlement.com/.

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