If you were or are a Cash App user in the past six years, you may be eligible for $2,500 in compensation.
According to Cash App’s website, users who experienced unauthorized withdrawals or transfers from their Cash App accounts could be eligible for compensation, provided they had an account between August 23, 2018, and August 20, 2024.
The settlement is part of a $15 million class action lawsuit that blames Cash App for two major data breaches that drained some users’ brokerage accounts. If you were involved in this data breach, please submit a completed Application form by November 18, 2024 at the latest to receive your payment.
Wait, back – what happened to Cash App?
In 2022, a former Cash App employee managed to access account data without permission. As if that wasn’t bad enough, in 2023, the company let an unauthorized user access accounts through reused phone numbers linked to the accounts.
Who is eligible for the $2,500 compensation?
Not everyone who has used Cash App in the past six years is eligible for $2,500 compensation. You should only make a claim if you have suffered financial losses in connection with the data breach.
In addition to out-of-pocket expenses, Cash App users affected by the breaches may be compensated for lost time and transaction losses. They can apply for lost time compensation for up to three hours at a rate of $25. The transaction losses could include reimbursement for credit monitoring, identity theft insurance, overdraft fees, account closure fees, and other costs related to the data breaches.
It is important to note that no payment amount completed. According to Cash App, if the net settlement amount ($15 million) is not enough to pay all approved claims, payments will be prorated.
Should I stop using Cash App?
No, this doesn’t mean you should stop using Cash App. But it can’t hurt to be cautious as a Cash App user.
Please note that funds stored in the Cash App account are not FDIC insured unless you have a Cash Card. As long as you have this debit card, the money held in your account is insured by the FDIC up to $250,000.
That said, it’s still a good idea to regularly transfer money from your Cash App account to an account with potentially better security, such as a checking account at a bank. While these accounts may not be completely immune to cyberattacks, their security record may be more reassuring than Cash App’s.
For better or worse, Cash App has changed the way we pay each other. It makes payments convenient, even if that convenience isn’t always free. If you believe you’ve been a victim of the data breaches, report your claim before the November 18, 2024 deadline.
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