Current and former users of the Cash App may be eligible to claim compensation as part of a proposed class-action settlement with the online payment service. Cash App Investing and its parent company, Block Inc., have agreed to pay $15 million to settle a lawsuit that accused them of not adequately protecting user information during and after recent data breaches that led to unauthorized charges on Cash App customers’ accounts.
The lawsuit alleged that Cash App and Block failed to implement sufficient security measures to safeguard customer data. One incident highlighted in the complaint involved a former employee downloading reports of some U.S. users without authorization in 2021. Another breach in 2023 saw an unauthorized user accessing Cash App accounts using linked phone numbers. Despite denying any wrongdoing, Cash App and Block agreed to the settlement to resolve the litigation.
To receive a settlement payment, impacted customers must submit a claim on the official settlement administrator’s website by the deadline of Nov. 18. Eligible claimants include current or former Cash App users affected by unauthorized access to their personal information or fraudulent withdrawals between Aug. 23, 2018, and Aug. 20 of this year. Potential reimbursement amounts vary based on documented losses, with up to $2,500 available for out-of-pocket losses, $25 per hour for lost time (up to three hours), and additional compensation for transaction losses.
Customers can also choose to exclude themselves from the settlement by Nov. 1, giving them the option to pursue separate legal action in the future. Objecting to the settlement is also possible by submitting a written objection to the court before Nov. 1. Those who take no action will not receive any payments and may forfeit the right to participate in any future lawsuits related to claims covered in the settlement.
In light of data breaches, consumers are advised to enhance their data protection measures by creating strong passwords and enabling multifactor authentication where available. It’s essential to change passwords promptly after a breach notification, monitor account activities closely for suspicious transactions, and verify contact details from official company websites to avoid falling victim to phishing scams. Additionally, free credit freezes and fraud alerts provided by major credit bureaus can help individuals safeguard against identity theft.
Payment apps like Cash App, Zelle, and Venmo require users to exercise caution, ensuring they verify recipients before transferring money and avoiding clicking on links in unsolicited emails or messages. The Federal Trade Commission and banking associations recommend staying vigilant to protect personal information in an increasingly digital environment.
