Cash App settlement results in nearly $380,000 for Nebraska

LINCOLN, Neb. (KLKN) – Attorney General Mike Hilgers announced a $45 million settlement with Block, Inc., the company that owns Cash App. The settlement includes 46 partnering states and alleges that the company misled consumers.

Block allegedly failed to protect users from fraud by failing to provide fraud protection and resolution that they promised and is required by law. According to Block, Cash App users were told their money was completely safe, implying the app had protections in place.

Many users used Cash App as their primary financial account. Block promoted direct deposits and government benefits while fraud within the platform was skyrocketing. For many years, Cash App had no customer support outside of social media. Fake numbers were published across the web which were ran by scammers posing as Cash App. The scammers would then take over accounts and have access to other financial accounts.

According to the settlement, Block has agreed to implement responsible practices like maintaining customer support, stop making false claims about Cash App’s fraud protection and educating users about common types of fraud.

Nebraska’s portion of the settlement is $379,619.99.

Block Inc. ensures they have made steps to secure safety for users of Cash App.

“We’ve reached an agreement that resolves a previously disclosed legacy matter that primarily relates to historical aspects of our business,” said a company spokesperson for Block Inc. “Cash App has made significant investments in consumer protection, customer service, and compliance in order to safeguard and serve the tens of millions of Americans who rely on Cash App to meet their banking and credit needs. We share the commitment of the attorneys general to addressing industry challenges and continue to invest in operations and technology to promote a safe and healthy financial ecosystem.”