Jack Dorsey’s Block settles Cash App fraud claims with 46 states for $45m
Block, the payments company chaired by Jack Dorsey, has agreed to pay $45 million to settle claims from 46 US states that it mishandled fraud on Cash App, its money-transfer and digital-banking app.
The settlement is the latest sign that state regulators are moving into ground the Consumer Financial Protection Bureau (CFPB) has vacated under the Trump administration.
According to a New York court filing tied to the settlement, Block was accused of telling customers that Cash App carried the security of a traditional bank and that their balances were FDIC-insured, when that protection would apply only if a partner bank failed.
Regulators also said the company lacked effective fraud-prevention procedures and often failed to investigate reports of unauthorised transactions.
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