Cash App to Pay $45 Million Settlement Over Fraud

Users of Cash App could see major changes after parent company Block agreed to a $45 million multistate settlement resolving allegations that it failed to adequately protect customers from fraud.

According to Louisiana Attorney General Liz Murrill, Louisiana’s share of the settlement is more than $557,000.

State investigators alleged Cash App marketed itself as offering bank-like fraud protections while failing to implement adequate safeguards. The investigation also found users could create multiple accounts with limited identity verification, making scams easier to carry out. In addition, the lack of a legitimate customer support phone number reportedly led many users to fake support lines operated by scammers.

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As part of the settlement, Cash App has agreed to strengthen its fraud detection systems and improve customer service, including offering 24-hour customer support with live phone agents available for at least 13.5 hours each day. Block denied any wrongdoing but said the settlement resolves issues related to historical business practices.