West Virginia Attorney General JB McCuskey announced a $45 million multistate settlement with Block, Inc., the company behind the peer-to-peer payment app Cash App. The settlement resolves allegations that Block misled consumers about Cash App's safety, failed to protect users from fraud and didn't provide the fraud protection and resolution it promised and that the law requires.
“Block Inc. put profits before people and that is unacceptable. This settlement holds this company accountable and implements protections for consumers that should have been in place all along,” Attorney General McCuskey said.
Block told users their money was safe, implying Cash App worked like a bank, which wasn't true. As fraud on the platform rose sharply, Block continued aggressively marketing the app – including pushing direct deposits of paychecks and government benefits to unbanked and underbanked consumers who were especially vulnerable to fraud – without ensuring it could support those users when problems arose.
Investigators found Block’s own practices made fraud easier. Its sign-up process was fast and frictionless, requiring minimal identity verification. For years Cash App offered no phone support, leaving users to find fake customer service numbers run by scammers who then drained their accounts. Additionally, a social media promotion called Cash App Fridays, which encouraged users to publicly post their $cashtag for a chance at a prize, became a tool scammers used to steal login credentials – a scam Block knew about but let continue for years.
The failures left real victims. Innocent users faced weeks-long account lockouts, and fraud victims often had no recourse because Block failed to investigate unauthorized transactions or issue refunds required by law.
Under the settlement, Block must maintain customer support able to resolve fraud complaints and lockouts, offer live support 24 hours a day – with phone availability at least 13.5 hours a day and live chat at least 18 hours a day, stop misleading claims about Cash App’s safety, discontinue marketing practices known to increase fraud, educate consumers about common scams, and fulfill its legal duty to investigate fraud claims and reimburse victims.
The settlement also reaffirms Block’s commitment, under a related CFPB settlement, to distribute between $75 million and $120 million to consumers nationwide. More information is available at consumerfinance.gov/enforcement/actions/block-inc/ and cashappcfpbsettlement.com.
Oregon and Texas led the investigation, securing relief for all 46 participating states. West Virginia will receive $363,498.65.
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