Customers who have fallen victim to fraud via a popular payment app may be able to Claim up to $2,500 as part of a proposed multi-million dollar class action settlement.
Cash App denies any wrongdoing but has agreed to a $15 million settlement.
Anyone who believes they have been the victim of fraud on their Cash App account can submit a claim.
The lawsuit alleges that Cash App put customer funds at risk by “failing to exercise due diligence in securing and protecting consumer information in connection with a massive data breach in December 2021.”
“I’m not surprised. And I think it’s obviously a good thing that they were held accountable,” said Lori Silverman, who heads the Clark Howard Consumer Action Center.
They have been receiving calls about payment app fraud for years.
The settlement agreement states that you are entitled to payment if “your personal information, your Cash App account, or your Cash App Investing account was accessed without your consent, or if you made unauthorized or fraudulent withdrawals or transfers.”
Channel 2 Action News has reported a number of such problems with Cash App.
In 2023 Cash App deleted $1,200 from Napoleon Fielder’s Cash App wallet.
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“To me, it’s like they want me to get frustrated and give up and they want me to keep my money, but I’m not going to do that,” Fielder said.
Justin Gray, consumer researcher at Channel 2 The Consumer Financial Protection Bureau’s database was also reviewed, which contains over 4,000 complaints about Cash App.
A complaint filed in June stated: “Cash App continues to allow unauthorized charges to be made to my account. I leave my Cash App card empty because charges keep coming up.”
Cash App admits no wrongdoing and denies the claims made in the lawsuit.
But any Cash App customer who was a victim of account fraud between August 23, 2018, and August 22, 2024 is eligible to file a claim.
Silverman recommends that anyone who uses payment apps set up a separate bank account just for those transactions.
“You don’t have to give them a lot of access. I mean, that’s the whole point of setting up a separate account: They only have access to the small amount you put into that account,” Silverman said.
The final hearing to approve the settlement will take place in December.
If you wish to make a claim You have until November 18th to file the Cash App lawsuit.
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