Attorney General Jeff Jackson Secures Up to $165 Million Settlement Over Cash App Fraud Failures

FOR IMMEDIATE RELEASE
Wednesday, July 8, 2026
Contact: [email protected]
919-538-2809

RALEIGH - Cash App told its users their money was safe and protected like it would be at a bank. It wasn't. When fraud happened, the company often didn't investigate, didn't refund, and for years didn't even have a phone number to call.

Today, Attorney General Jeff Jackson announced a settlement with Block, Inc., the company that owns Cash App, resolving allegations that Block misrepresented the app's safety while making choices that made fraud easier. Under the settlement, Block will complete an already-promised distribution between $75 million and $120 million to consumers nationwide and also pay $45 million to the states, including nearly $1 million to North Carolina.

"People deserve to know that their money is actually protected," said Attorney General Jeff Jackson. "Block told users Cash App was safe, but made it easier for fraud to occur, and then failed to help when customers needed it most. This settlement gets money back for the customers who took them at their word."

According to AG Jackson's allegations, Block knew about safety risks on Cash App but told users the app was safe anyway.

Here's how AG Jackson claimed the company made fraud easier:

• Block's sign-up process was designed to be fast and frictionless, with minimal identity verification. That made it easy for fraudsters to create accounts, not just legitimate users.

• For years, Cash App had no phone support. Users who needed help could only message through the app or on social media. People who got locked out - or just wanted to talk to someone - searched online for a phone number and often ended up calling fake 1-800 numbers run by scammers posing as Cash App. Those scammers would then take over accounts or drain users' other financial accounts. Block knew this was happening and didn't warn users or set up a real phone line until years later.

• Block ran a social media promotion called Cash App Fridays, encouraging users to publicly post their $cashtag - a unique Cash App identifier - for a chance to win a weekly prize. Fraudsters would then contact those users, tell them they'd won, and trick them into handing over their login information. Block knew about these scams and kept running the promotion anyway, for years.

• Cash App users were left without a lifeline because of Block's failure to provide adequate customer service for victims of fraud. Block froze innocent users' accounts for suspicious activity, but then made them wait weeks before resolving the errors. Without adequate customer service, innocent users were locked out of their accounts for weeks with no way to access their money.

Under the settlement, Block must:

• Maintain customer support that can actually resolve fraud complaints and account lockouts, including live support 24 hours a day, with a human available by phone at least 13.5 hours a day.

• Stop making false or misleading claims about Cash App's safety.

• Discontinue marketing practices known to increase fraud on the platform.

• Directly educate consumers about common types of fraud.

• Investigate fraud claims and reimburse users for unauthorized transactions, as the law requires.

Attorney General Jackson was joined in reaching the settlement by the Attorneys General of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and the Governors of Kentucky and Pennsylvania.

###