Cash App, the widely-used peer-to-peer payment platform by Block, Inc., has reached a significant $15 million settlement following a class action lawsuit.
This case involved unauthorized transactions, fraudulent charges, and issues related to frozen accounts. As a result, affected customers may receive up to $2,500 in compensation.
This settlement is part of a growing wave of lawsuits targeting financial technology companies over concerns about account security and customer protection practices.
Cash App Settlement Overview
In 2022, Cash App confirmed that a former employee had gained unauthorized access to user accounts. A year later, in 2023, it came to light that an anonymous individual used recycled phone numbers to access multiple accounts. This raised concerns about the platform’s security protocols, which were reportedly insufficient to prevent such breaches.
The $15 million settlement will compensate users who have experienced fraudulent transactions or unjust account suspensions. Millions of users’ personal data was exposed due to data leaks, raising concerns about privacy violations. The settlement aims to address the financial losses, emotional distress, and reputational damage caused by these issues.
How Much Compensation Will Users Receive?
Eligible claimants can receive compensation based on their experiences with unauthorized activity or data security breaches on their Cash App accounts between August 2018 and August 2024. Compensation includes:
- Up to $2,500 for users who were affected by fraudulent transactions or account suspensions.
- Lost time reimbursement: Users who spent up to three hours dealing with these issues can claim $25 per hour.
- Fraudulent transaction reimbursement: Users who experienced unauthorized transactions must submit proof, such as communications with Cash App, police reports, or other supporting documentation.
Eligibility for Compensation
To qualify for compensation, users must meet the following criteria:
- Residency: Claimants must be permanent residents of the United States.
- Affected Period: The issues must have occurred between August 2018 and August 2024.
- Issues Experienced:
- Unauthorized Access: If a user’s personal information or Cash App accounts were accessed without permission.
- Fraudulent Transactions: If unauthorized charges or illegal transfers were made from their accounts.
- Resolution Issues: If users had difficulty resolving these issues with Cash App or Cash Investing during the affected period.
Users must ensure that they have submitted the necessary documentation before the deadline and that their claims are accepted.
Key Dates and Payment Timeline
The court approved the $15 million settlement on January 13, 2024. November 18, 2024, was the final date for submitting claims and documentation to prove that users were affected by unauthorized transactions or account freezes.
Although the official payment date has not been confirmed, **affected users can expect to receive their compensation by the end of 2025. Payments will either be made via direct deposit or check. Users are advised to:
- Check payment method: Choose between direct deposit or check, keeping in mind that checks may take longer to arrive.
- Be patient: Processing payments can take up to 5 days after they are issued.
Claimants can check the status of their claims on the official Cash App Security Settlement website.
Cash App’s $15 million settlement serves as an important reminder of the need for robust security practices in the financial technology sector.
The platform’s response to the class action lawsuit aims to compensate affected users and improve its security measures. If you’re eligible, be sure to submit your claim before the deadline and monitor the official settlement site for updates.
FAQs
How do I know if I’m eligible for compensation?
You must have experienced unauthorized access, fraudulent transactions, or unresolved account issues between August 2018 and August 2024 while being a permanent U.S. resident.
How much can I claim?
You may receive up to $2,500 for fraudulent activity, lost time, and other issues related to your Cash App account.
When will I receive my compensation?
While the official payment date is pending, payments are expected to be issued by end of 2025.