Block agrees $45mn Cash App settlement with 46 US states
The agreement requires round-the-clock live phone support and safeguards around marketing, while preserving consumer restitution tied to a prior CFPB case.
By Ingrid Halvorsen · Staff Writer
· 2 min read
Block has agreed to a $45 million settlement with 46 US states over allegations that Cash App did not do enough to protect users from fraud, according to the participating states. The agreement adds state-level enforcement pressure on peer-to-peer payment apps, a segment used by consumers for instant transfers but subject to different protections than bank deposits.
The states alleged that Block told Cash App customers their funds were safe in a way that wrongly suggested the service operated like a bank account with comparable safeguards. They also said the company was aware that fraud on the platform was increasing sharply, while it continued to market the service rather than warn users or strengthen controls.
Cash App lets users send money to each other through the app, including by using a $cashtag, the unique identifier tied to an account. According to the states, Block’s practices made abuse easier in some respects: sign-up required limited identity checks, users lacked phone support, and marketing encouraged customers to post their $cashtags publicly on social media.
Under the settlement, Block must maintain customer support, including live telephone assistance available 24 hours a day. The company must also end marketing practices that increase fraud risk and meet obligations to investigate user claims and reimburse customers, according to the state agreement.
The settlement also addresses consumer restitution connected to a separate federal case. In early 2025, before President Donald Trump took office, the Consumer Financial Protection Bureau resolved an investigation into Cash App involving similar conduct, according to Finextra. That federal settlement included nationwide restitution to consumers of between $75 million and $120 million.
The multistate agreement is designed to preserve that restitution obligation if it is not paid under the CFPB settlement. If Block fails to make the promised payments, the obligation will be incorporated into the states’ settlement and enforced by a multistate executive committee, according to the participating states.
The provision comes after the CFPB, under the Trump administration, cancelled several settlements, including at least two in which restitution had not yet been distributed, according to Finextra. The bureau also dropped a lawsuit against JPMorgan Chase, Bank of America and Wells Fargo concerning alleged fraud problems on Zelle, a rival peer-to-peer payments network.
Oregon Attorney General Rayfield said Cash App users, including people with few alternatives, were told their money was safe and were left without sufficient help when problems occurred. Rayfield said the settlement was intended to hold Block accountable and ensure the company could not avoid consumer repayment commitments.
This story draws on original reporting from Finextra Research.
