Attorney General Jonathan Skrmetti Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App

Attorney General Jonathan Skrmetti Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App

Attorney General Jonathan Skrmetti today announced a $45 million multistate settlement with Block, Inc., the company behind the popular peer-to-peer payments app Cash App. The settlement resolves allegations that Block misled consumers about the safety of Cash App, failed to protect users from fraud on the platform, and didn't provide the fraud protection or resolution that the company promised and that was required by law. The multistate included Tennessee and 45 other states. Tennessee will receive $737,136.95 in settlement funds.

"Companies that promise Tennesseans their money will be protected need to keep their promises," said Attorney General Jonathan Skrmetti. "Block failed to give consumers the safeguards and support they were guaranteed. This settlement holds the company accountable and ensures meaningful reforms to better protect Cash App users."

Block told Cash App users their money was safe, implying that the app provided the same protections as a bank. But that wasn't true. At the same time, Block knew fraud on its platform was rising sharply. Instead of warning users or strengthening protections, the company doubled down on marketing.

For years, Block actively promoted direct deposits of paychecks and government benefits into Cash App. It made a particular push to reach unbanked and underbanked consumers - people who would often rely on Cash App as their primary financial account, and who were especially vulnerable to fraud. Block grew its user base without making sure it could support those users when problems arose.

Block's failure to provide adequate customer service and to fulfill its promise to protect users from fraud had real consequences for real people. Innocent users who experienced automated account locks for suspicious transactions were frequently locked out of their accounts for weeks without a way to access their money. Victims of fraud through the app were often left with no recourse, because delays made it impossible to get stolen money back from scammers and because Block failed to investigate unauthorized transactions and failed to issue refunds when required by law.

Under the settlement, Block has agreed to implement and maintain responsible practices to resolve these issues, including to:

• Maintain customer support that can resolve fraud complaints, account lockouts, and other problems.
• Offer live support 24 hours a day, with a human available by phone at least 13.5 hours a day and by live chat at least 18 hours a day.
• Stop making false or misleading claims about Cash App's safety and how it protects users from fraud.
• Discontinue marketing practices known to increase fraud on the platform.
• Directly educate consumers about common types of fraud.
• Fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.

The multistate settlement also reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers nationwide as part of a settlement with the CFPB. Additional information regarding the CFPB's settlement is available at: https://www.consumerfinance.gov/enforcement/actions/block-inc/ and https://cashappcfpbsettlement.com/.

Oregon and Texas led the investigation, securing relief for all 46 participating states.

Read the complaint.

Read the judgment.