Block, Inc., the parent company of Cash App, has agreed to pay $45 million to settle allegations brought by 46 state attorneys general that the company misrepresented the security of its payment platform and failed to protect users from fraud.

The bipartisan agreement, announced Wednesday, centers on a series of documented security and consumer-protection shortcomings. Investigators found that Cash App marketed itself as offering bank-equivalent protections while, in practice, falling significantly short of those standards.

Key Failures Cited by Investigators

  • No phone support for years: Because Cash App offered no customer service phone line, users searching online for one frequently reached fraudulent numbers operated by scammers. Block was aware of this problem and did not establish a real support line until 2021.
  • Weak account verification: The platform did not require a Social Security number or date of birth during signup, and placed no limit on the number of accounts a single person could open. Investigators concluded this allowed bad actors to run networks of scam accounts.
  • Delayed fraud investigations: Block is alleged to have delayed internal fraud reviews and imposed unwarranted account lockouts, leaving victims with no viable path to recover stolen funds.
  • Deceptive promotions: Regulators pointed to misleading social media promotions as contributing to user harm.

New York Attorney General Letitia James stated that the company “failed to help users when they were scammed, misled consumers about the safety of Cash App, and failed to provide the fraud protection and resolution that it promised and was required to provide by law.” Texas will receive $5 million from the settlement, while New York will receive $1.6 million. States with smaller populations are receiving under $1 million each.

Remediation Requirements

The consent judgments require Block to maintain live customer support around the clock, with at least 13.5 hours per day staffed by a real person. The agreement also reaffirms obligations under a related federal action: a January 2025 consent order from the Consumer Financial Protection Bureau that requires Block to distribute between $75 million and $120 million to affected consumers across states.

As of the announcement, Block had not issued a public statement regarding the settlement. The company, founded by Jack Dorsey in 2009, also operates the Square payment platform and the music service Tidal.