Block Settles Multistate Fraud Claims Over Cash App Security

The investigation centered on how Block facilitated account creation with minimal identity verification, effectively opening the door for scammers. For years, the company operated without a dedicated phone support line, forcing users to navigate automated systems or social media for help. This lack of infrastructure frequently directed victims toward fraudulent third-party phone numbers, leading to account takeovers and emptied bank balances. Nebraska Attorney General Mike Hilgers noted that the company targeted unbanked populations who relied on the service as their primary financial hub, leaving them uniquely exposed to exploitation.

Under the terms of the agreement, Block must overhaul its customer service model. The company is now required to provide 24-hour support, including live phone access for at least 13.5 hours daily and chat assistance for 18 hours. Furthermore, the firm must cease deceptive marketing practices and strictly adhere to legal requirements for investigating unauthorized transactions and issuing refunds. This settlement operates alongside a separate agreement with the Consumer Financial Protection Bureau, which mandates between $75 million and $120 million in consumer compensation. Block maintains that the settlement addresses legacy business practices and that it has since strengthened its compliance and protection protocols.