In 2024 and 2025, Cash App, operated by Block, Inc., became the subject of a major class-action lawsuit involving allegations of security failures, fraudulent transactions, and violations of consumer protection laws. The case centers on claims that Cash App failed to adequately protect users’ data and financial information, leading to unauthorized account access, fraudulent charges, and mishandled dispute investigations. The lawsuit led to a settlement aimed at compensating affected users and improving Cash App’s security and customer support practices.
Background and Origins of the Lawsuit
Cash App is a widely used peer-to-peer payment platform with over 56 million accounts. Between August 23, 2018, and August 20, 2024, users experienced significant security lapses allowing unauthorized withdrawals, fraudulent transactions, and inadequate resolution of account disputes. Plaintiffs alleged that Cash App delayed or denied refunds, weakly enforced fraud detection, and provided insufficient customer service to victims.
Key Legal Claims
- Failure to protect user data and accounts from fraud and unauthorized access.
- Violation of the Electronic Fund Transfer Act by denying or inadequately investigating unauthorized transaction disputes.
- Deceptive and unfair business practices by misleading users about security protections and support availability.
- Suppressing user complaints and discouraging claims through complex terms of service and difficult customer service channels.
Settlement Details
In early 2025, Block, Inc. agreed to a $15 million settlement to resolve the class-action lawsuit. The settlement provides compensation to eligible Cash App users who suffered financial losses, out-of-pocket expenses, or wasted time handling fraud-related issues during the eligibility period (August 23, 2018, to August 20, 2024).
- Eligible claimants who filed valid claims by the November 18, 2024 deadline could receive up to $2,500 for documented out-of-pocket losses due to fraudulent transactions or unauthorized account activity.
- Additional compensation of $25 per hour, up to three hours ($75), may be granted for time spent resolving fraud issues such as contacting customer support and securing accounts.
- Claimants submitting supporting documentation like receipts, bank statements, or police reports have priority for full compensation.
- Payments began processing in 2025, with many recipients expected to receive funds by the end of the year.
Consumer Financial Protection Bureau (CFPB) Actions
Separately, the CFPB ordered Block to pay $175 million—$120 million in consumer refunds and $55 million as a penalty—for inadequate fraud protection and poor customer service. The CFPB required Block to implement 24-hour live support and improve dispute investigations.
How to Check and Track Settlement Status
- Claimants can verify the status of their Cash App settlement payments by calling the settlement administrator’s hotline or visiting the official settlement website.
- It is important to keep claim confirmation numbers and claimant IDs handy for inquiries.
- Settlement status updates and payment instructions have been communicated via email and mail to eligible participants.
Frequently Asked Questions
What is the Cash App lawsuit about?
The lawsuit addresses failures in Cash App’s security and fraud management that allowed unauthorized transactions and caused financial losses to users, coupled with inadequate dispute handling and customer support.
Who is eligible for the Cash App settlement?
Users of Cash App in the United States who experienced fraudulent or unauthorized transactions, or who spent time dealing with such issues, between August 23, 2018, and August 20, 2024, and who filed a claim by November 18, 2024.
How much can eligible claimants receive?
Up to $2,500 for documented financial losses plus up to $75 for related lost time, depending on claim validation and settlement fund availability.
What changes has Cash App made?
Following the settlement and CFPB order, Block has committed to enhancing security measures, implementing 24/7 customer support, and improving the process for investigating and resolving fraud claims.
Is the settlement still open?
No. The claim filing deadline was November 18, 2024. Late claims are no longer accepted.
Conclusion
The Cash App lawsuit and resulting $15 million settlement represent a significant effort to hold a major digital payment platform accountable for weaknesses in security and customer service that harmed users. The case highlights growing regulatory and legal scrutiny of fintech companies’ protection of consumer data and funds. The settlement provides relief for affected Cash App users and pushes for stronger fraud prevention practices industry-wide. As digital payments continue to grow, this lawsuit serves as a reminder of the critical importance of safeguarding financial platforms and supporting consumers in the face of emerging cyber threats.
