Block has agreed to a $45 million settlement with 46 U.S. states regarding allegations that its peer-to-peer payments app, Cash App, inadequately protected users from fraud. The settlement was announced on July 9, 2026, following claims from state attorneys general that Block misled users by promoting Cash App as offering bank-like protections, including advanced fraud detection.
Allegations Against Cash App
State attorneys general asserted that Cash App permitted users to create accounts without providing a Social Security number or date of birth. This lack of verification made it easier for fraudsters to exploit the platform. Furthermore, users could open multiple accounts without restrictions, increasing the risk of fraudulent activities.
The investigation revealed that Cash App's customer support was insufficient, lacking an official customer service phone number. As a result, many users who were locked out of their accounts resorted to contacting fake customer service numbers operated by scammers, exacerbating their issues.
Regulatory Scrutiny and Previous Actions
The settlement adds to the growing scrutiny of Cash App's business practices by regulators. Earlier, the Consumer Financial Protection Bureau accused Block of failing to investigate fraud claims adequately and provide necessary customer support. This earlier action resulted in $175 million in penalties and compensation for affected consumers.
