In a surprising development, Cash App, the popular peer-to-peer payment service by Block, Inc., has agreed to a substantial $15 million settlement.
This follows a class action lawsuit filed over issues like unauthorized transactions, fraudulent charges, and frozen accounts on the platform. Affected customers could receive compensation of up to $2,500.
This case is part of a larger trend of lawsuits against financial technology companies, pushing them to enhance their security and account management practices.
Cash App Settlement Details
In 2022, Cash App disclosed that a former employee had gained unauthorized access to user accounts. By 2023, it became public that an anonymous user had accessed multiple accounts by using recycled phone numbers. As a result, Cash App was criticized for failing to implement sufficient security protocols to prevent such breaches.
As part of the $15 million settlement, Cash App users who were victims of fraudulent transactions, account freezes, and similar issues are eligible for compensation.
The settlement fund aims to address the emotional distress, financial losses, and reputation damage caused by these incidents, especially in cases where personal data privacy was compromised.
How Much Compensation Will Claimants Receive?
Eligible claimants can receive up to $2,500 if they experienced any of the following between August 2018 and August 2024:
- Unauthorized access: If someone accessed or shared their Cash App or Cash Investing accounts without consent.
- Fraudulent transactions: If unauthorized charges or illegal transfers were made from their accounts.
- Resolution issues: If they had difficulty resolving issues related to their account.
Additionally, users can be compensated for lost time, with a reimbursement rate of $25 per hour for up to three hours.
To apply for compensation due to fraudulent transactions, claimants must submit:
- Documentation of the unauthorized transaction (e.g., communications with Cash App or a police report proving the fraudulent activity).
Who Is Eligible for Compensation?
To qualify for compensation, users must:
- Be permanent residents of the United States.
- Have encountered issues with their Cash App or Cash Investing accounts between August 2018 and August 2024. These include:
- Unauthorized access to personal information or accounts.
- Fraudulent transactions or unauthorized transfers.
- Resolution issues related to account management during this period.
Eligible users must submit their claims with all necessary documentation by the specified deadline. Only those whose claims are accepted will receive compensation.
Payment Timeline
The court approved the settlement on January 13, 2024, and the deadline to submit claims and supporting documents was November 18, 2024. Although a specific payment date is not yet confirmed, affected users can expect to receive their compensation by the end of 2025, either through direct deposit or a check in the mail.
Claimants can follow these steps while awaiting payment:
- Select Payment Method: Choose how you’d like to receive your compensation, keeping in mind that checks may take longer than direct deposits.
- Exercise Patience: After payment is issued, processing could take up to 5 days.
To track the status of their claims, users can visit the official Cash App Security Settlement website, where they will receive updates.
This $15 million settlement serves as a critical step towards addressing customer concerns regarding data security, fraudulent transactions, and account management on Cash App.
Affected users should follow the claims process carefully to ensure they receive the compensation they deserve.
By addressing these issues, Cash App and other financial tech companies will likely face increased pressure to enhance their security measures and better protect users moving forward.
FAQs
Who can file a claim for compensation?
Users who have experienced unauthorized access, fraudulent transactions, or resolution issues with their Cash App or Cash Investing accounts between August 2018 and August 2024 and are permanent residents of the United States are eligible.
How much can I receive from the settlement?
Claimants can receive up to $2,500, plus compensation for lost time at a rate of $25 per hour for up to three hours.
When will I receive my payment?
Payments are expected by the end of 2025. Users will receive their compensation either via direct deposit or check.
What documentation is required to claim compensation?
Claimants must provide evidence such as communications with Cash App or a police report for fraudulent transactions.