Cash App customers may be able to recover more than $2,500 each in a $15 million class action lawsuit alleging data and security breaches at the mobile payment service.
People whose accounts were accessed without authorization or who made fraudulent withdrawals or transfers can make claims as long as they had or currently have an account between August 23, 2018, and August 20, 2024, the settlement agency’s website says.
The class action lawsuit related to a 2021 incident that the company disclosed in 2022, in which a former employee downloaded reports from some U.S. users without permission. It also mentioned another breach disclosed in 2023, in which an unauthorized user accessed some Cash App accounts using the phone numbers associated with them.
The plaintiffs also alleged that Cash App and Block, the app’s parent company, failed to install controls to block unauthorized users and that the company subsequently mishandled customer complaints about security breaches and fraudulent transactions.
As part of the settlement, Cash App and Block also agreed to take steps to strengthen data security.
Cash App and Block have denied any wrongdoing. However, to settle the dispute, they have agreed to pay $15 million. Aside from legal and administrative fees, this money will go to affected customers who have legitimate claims.
How to file a Cash App claim
Customers can submit a claim on this website. You will need to either enter a notification ID and verification code from a notification sent by mail or email, or submit a claim if you have not received such a notification.
What if I have more than one Cash App account?
The comparison website states that each claimant only needs to submit one claim form. If you have multiple accounts, you should provide your $Cashtag identifier – that’s the unique username created for each account – and information about your claims on one claim form.
By when do I have to submit a Cash App claim?
Customers have until November 18 to make a claim under the settlement.
How much money can customers receive as part of the settlement?
This is currently unclear as the amount depends on how many people make claims.
However, individuals affected by the data and security breaches can make claims for up to $2,500 to recover their losses. According to the settlement website, they must support their claims with third-party documentation.
Expenses may include:
- Costs for credit monitoring or identity theft insurance, requesting a credit report or a credit freeze
- Costs incurred by blocking a payment card or issuing a replacement card
- Costs associated with closing a bank account and opening a new bank account
- Overdraft fees that were not refunded
- Fees for late or missed payments or costs that were not reimbursed
Customers can also claim up to three hours of lost time at a rate of $25 per hour, the website said.
Additionally, Cash App users can file a claim to recover transaction losses. These claims also require the submission of documentation such as a copy of a police report.
What happens if the compensation fund cannot fully settle all claims?
If the settlement amount is not sufficient to fully settle all recognized claims, payments will be made on a reduced pro rata basis.
What happens if I move after reporting the damage?
The settlement agency’s website states that people who change their mailing address after filing a claim are responsible for informing the claims adjuster of their new contact information. To do this, you must call 1-866-615-9740 or send your new address in writing to:
Cash App Security Processing Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
What other options do I have?
If you wish to opt out of the settlement, class members will have the opportunity to “opt out” before November 1. This will allow you to sue the defendants later or join another related lawsuit. You may also object to the settlement in writing before November 1.
Finally, you can choose to do nothing. However, if you choose inaction, you will not receive any payments and may also give up the right to file another lawsuit with claims covered in the settlement.
Is it safe to use payment apps?
Payment apps like Cash App, Zelle and Venmo can be convenient and secure, but they are also often the target of fraudsters and scammers, which is why the American Bankers Association and others urge extra caution when using them.
Scammers sometimes pretend to be someone you know and say they need money for an emergency or want to send you a prize or payment as long as you send them money first, the Federal Trade Commission says. But once you send someone money through a payment app, it’s nearly impossible to get the money back, the ABA warns.
The safest way to do this is to confirm that you know who you are sending money to and avoid clicking on links in unexpected emails, text messages or message requests.
— With reporting from the Associated Press.
