Users of a popular payment app stand to recover funds after regulators found misleading promises about security and support.
Block Inc., the company behind the Cash App payment service, has agreed to the $45 million multistate settlement addressing allegations that the app failed to deliver on advertised fraud protections, says the Texas Attorney General.
The multistate investigation was launched because Cash App allegedly marketed itself as a safe banking alternative despite rising fraud and inadequate protections.
Plaintiffs accused the company of lax verification standards, years-long absence of phone support, and deceptive social media promotions that left users exposed to scammers.
The complaint claims the defendant delayed internal fraud investigations and set unwarranted account lockouts preventing victims from recovering stolen funds.
Under the agreement, the company must provide 24-hour customer support, stop deceptive marketing, and fulfill legal obligations to investigate and reimburse certain losses.
Forty-six states participated in the investigation targeting practices that exploited user trust.
The resolution includes a restitution program for victims impacted by unauthorized transactions.
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