Do you use the apps Zelle, Cash App and Venmo? Here’s how to protect yourself.
Mobile payment apps like Venmo, Zelle and PayPal are becoming increasingly popular in today’s technology world, but they are also becoming targets for fraudsters.
Anastasia Riddle, USA TODAY
Cash App users can look forward to a boost in their bank accounts after the popular money transfer app was ordered to pay $15 million in damages as part of a settlement in a lawsuit following a security breach three years ago.
Some of that money could be set aside for users in Illinois whose app accounts experienced fraudulent withdrawals.
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Here’s what you need to know.
How many users were affected?
According to a class action lawsuit filed by USA TODAY, Cash App Investing and Block Inc., the companies behind the app were sued by plaintiffs for “failing to exercise due diligence in securing and protecting consumer information.”
The lawsuit states that the December 2021 data breach “resulted in the unauthorized public release of the personal information of 8.2 million current and former Cash App Investing customers.”
A former employee also gained access to Cash App users’ personal information during his employment and downloaded the data without the users’ knowledge, the lawsuit says.
Has my data been compromised?
Cash App users should check for any unauthorized or fraudulent withdrawals or transfers from their Cash App account between August 23, 2018, and August 20, 2024.
How much money can I get?
Eligible users who have discovered a fraudulent withdrawal can file a claim on the Cash App website. Damages can be up to $2,500 in cases of fraud.
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How to qualify for a claim
Cash App users who are eligible to claim must have had an account on August 23, 2018, and before August 20, 2024. The users who qualify must not have already been compensated by Block Inc., Cash App Investing or a third party, the mobile payment service said.
According to Cash App, a user can file a claim for:
- Expenses: Users can file a claim showing that their Cash App account was involved in the data breach. If a user is eligible for a refund, they can receive up to $2,500 after submitting the necessary documentation to the company.
- Lost Time: Cash App users who file a claim may be eligible for reimbursement for lost time. Users can file a claim for up to three hours at a rate of $25 per hour for time spent related to unauthorized users and data breaches.
- Transaction Losses: If a user has suffered a financial loss and has not been compensated, he or she may make a claim for compensation for transaction losses.
It is important to note that users with more than one account can only submit a single claim form. The mobile payment service recommends that users list all of their Cash App user IDs and information about their claims in a single claim form.
Filing a claim
To make a claim, Cash App users can submit a completed claim form for review by November 18, 2024.
You can submit the claim form at cashappsecuritysettlement.com/submit-claim.
Claire Grant writes about business, growth and development and other news topics for The State Journal-Register. Reach her at [email protected]; and on X (formerly known as Twitter): @Claire_Granted
