Cash App has agreed to pay its users $15 million to settle a class action lawsuit over alleged data and security breaches on the mobile payments platform.
The settlement comes after customers sued Cash App and its parent company Block for allegedly not doing enough to stop unauthorized users, Subsequently, customer complaints about violations and fraudulent activities are mishandled.
According to the suitCash App “failed to take reasonable steps to protect consumer information related to a December 2021 data breach that resulted in the unauthorized public release of (personally identifiable information) of 8.2 million current and former Cash App Investing customers.”
The lawsuit further states that Cash App’s “failure to take adequate security measures” following the first data breach led to a second data breach in 2023 in which users’ accounts were accessed without their authorization, resulting in unauthorized transactions.
The plaintiffs also claimed that several Cash App users complained about the company’s process for resolving payment errors, with some users saying it was “almost impossible” to get a Cash App representative on the phone.
Cash App has agreed to pay $15 million to a settlement fund that will reimburse affected users up to $2,500 for out-of-pocket losses resulting from the security breaches.
Despite agreeing to the settlement, Cash App and Block claim they did nothing wrong. according to the settlement location.
Eligible for the cash prize are users whose Cash App accounts were opened between August 23, 2018, and August 20, 2024, and were accessed without their permission or who made fraudulent transactions.
Eligible Cash App users have until November 18 to file a claim. Claims must include a brief description of the losses and third-party documentation, such as receipts, proving the losses.
