Cash App reaches $45 million settlement with 46 states over alleged failure to protect users from fraud
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The takeaway: Block, the parent company of mobile payment service Cash App, has reached a $45 million settlement with regulators and the attorneys general of 46 states and the District of Columbia to resolve allegations that it failed to adequately protect users from fraud. As part of the settlement, Block also agreed to provide live customer support to all users.
According to the indictment, Block exposed its users to fraud by misleading them about Cash App's security. The company promised advanced fraud detection mechanisms but allegedly allowed scammers to operate freely. Investigators further alleged that the app did not provide a phone number for customer support, leading many users to search online, where they found fake numbers created by scammers.
Investigators claimed that Block, founded by Twitter co-founder Jack Dorsey in 2009, was...
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