WASHINGTON, D.C. — Block, Inc., the parent company of Cash App, has agreed to a $15 million settlement in a class-action lawsuit. The lawsuit accused the company of negligence in two incidents involving user data breaches and unauthorized account access. The case, Salinas, et al. v. Block, Inc. and Cash App Investing, LLC, claimed that Block and Cash App were responsible for unauthorized access to user accounts, leading to fraudulent withdrawals and transfers.
Although Block and Cash App denied any liability or wrongdoing, they agreed to the settlement to avoid the costs and risks of prolonged litigation. The settlement will benefit former and current Cash App users who had their accounts accessed without authorization or experienced fraudulent transactions between August 23, 2018, and August 20, 2024.
Eligible users can submit a claim online for up to $2,500 to cover out-of-pocket losses such as credit monitoring, overdraft fees, or late payment charges resulting from the data breaches. Claims must be supported by third-party documentation to validate the incurred losses.
In addition to financial compensation, Block and Cash App have agreed to implement stronger data security measures. This includes enhanced controls to prevent unauthorized access to user data and improvements in resolving customer complaints regarding fraudulent transactions.
Impacted users are encouraged to file claims to recover losses. The deadline for submitting claims is yet to be announced, and users should stay informed through official settlement communication channels.
This settlement is an important step in holding companies accountable for data security and privacy protection, especially as digital payment platforms like Cash App, Venmo, and Zelle continue to grow in popularity.
