Cash app fraud
In re: Block Inc.
Date: July 8, 2026
Issue: Whether Block Inc. misled Cash App users about the app’s security and failed to protect them from fraud.
Case Summary: Block Inc. will pay $45 million to 46 states to resolve allegations that it misled Cash App users about the app’s security and failed to protect them from fraud.
In 2021, attorneys general from 46 states investigated Block Inc. for potential violations of state consumer protection laws and the Electronic Fund Transfer Act. According to the attorneys general, Block Inc. promoted direct deposits of paychecks and government benefits into Cash App while targeting unbanked and underbanked consumers who often relied on the app as their primary financial account and faced a greater risk of fraud. The attorneys general alleged that Block Inc. expanded its user base without putting adequate customer support and fraud protections in place.
Specifically, the attorneys general alleged that Block Inc. prioritized rapid user growth over account security and customer support. According to the Attorneys General, Block Inc. used minimal identity verification during account creation, making it easier for fraudsters to open Cash App accounts. The AGs also alleged that Block failed to provide phone support for years, allowing scammers posing as Cash App representatives to exploit users seeking assistance. In addition, the attorneys general claimed that Block continued to run its Cash App Fridays promotion despite knowing that fraudsters used the campaign to trick users into revealing their login credentials.
To resolve the claims, Block Inc. will pay $45 million to the attorneys general, to be divided among the participating states at their discretion. Block Inc will also improve its fraud prevention and customer service practices by strengthening identity verification, expanding customer support, responding more quickly to reports of unauthorized transactions, and maintaining procedures to investigate and resolve fraud complaints. In addition, Block will implement stronger safeguards to detect and prevent fraudulent activity and submit regular compliance reports to the participating states.
Bottom Line: Block Inc. did not admit to or deny the allegations against the company.
Documents: Consent Order
