Block to Pay $45 Million Over Cash App Security Claims

States Allege Misleading Safety Promises

Block Inc., the company behind Cash App, has agreed to pay $45 million to settle claims brought by regulators in nearly every US state. Prosecutors say the company misled users by marketing Cash App as offering bank level protections, while failing to maintain adequate fraud detection systems or a working customer support line for reporting scams.

New York AG Leads the Charge

New York Attorney General Letitia James said Cash App users were promised a safe platform but instead faced widespread fraud, accusing Block of prioritizing profit over user protection. Investigators allege the company was aware fraud was increasing but chose to focus on marketing rather than warning customers, particularly targeting unbanked and underbanked users who often relied on Cash App as their main financial account.

‘Cash App Friday’ Promotion Under Fire

The settlement also criticized Block’s social media giveaway. Regulators say scammers exploited the promotion by posing as winners to steal login credentials, and that Block continued running it despite knowing about the scheme.