Block and Cash App users could be entitled to up to $2,500 as part of a class action settlement agreement between users and the company.
Cash App was sued after users accused the company of negligence when a former employee accessed account data without permission in 2022. They said the company was also negligent when an “unauthorized user” accessed accounts in 2023 by reusing phone numbers linked to the accounts.
Users reported that Cash App “did not implement appropriate controls to prevent unauthorized access to their accounts.”
RELATED STORY | Know these risks with money transfer apps
As part of the settlement, Cash App admits no wrongdoing.
What is Cash App?
Cash App is an app that allows customers to send and receive money to each other, like Venmo and Apple Pay. It can also be used to send, spend, or invest in stocks or Bitcoin.
Who is eligible to participate?
Anyone who has used the app at any time since 2018 may be eligible. Anyone who has suffered an out-of-pocket loss and can prove it with third-party documentation can claim up to $2,500.
Defaults may include costs associated with credit monitoring, credit freezes, requesting a credit report, canceling a payment, and unreimbursed overdraft fees.
RELATED STORY | Prosecutor: Cash apps do not adequately protect users
Eligible persons are those who have suffered a financial loss as a result of an authorized withdrawal or refund.
According to the filing, Cash App will pay up to $15 million in damages.
How to make a claim
Users have until November 18, 2024 to file a claim online. However, filing a claim means the user joins the settlement and cannot seek further damages from this incident.
A federal judge is expected to finalize the settlement on Dec. 16. Payments could be made after the hearing.
