Block has agreed to pay $45 million to settle claims from 46 U.S. states alleging that its Cash App platform failed to adequately protect users from fraud. The settlement was announced in July 2026 and was first reported by Reuters.
State attorneys general alleged that Block misled users by falsely advertising that Cash App offered bank-like protections, including advanced fraud detection. Block denied any wrongdoing.
Investigators found that Cash App allowed users to create accounts without a Social Security number or date of birth, and placed no limits on how many accounts a single person could open — conditions that, according to the states, made the platform easier for scammers to exploit. The states also alleged that Cash App’s lack of an official customer support phone number left locked-out users vulnerable to fake support lines operated by fraudsters.
Under the terms of the settlement, Block is required to improve Cash App’s fraud prevention measures and customer service, including offering live customer support to users of the platform.
The settlement is the latest in a series of regulatory actions targeting Cash App’s business practices. The Consumer Financial Protection Bureau previously accused Block of failing to investigate fraud claims and provide adequate customer service, resulting in $175 million in penalties and consumer redress.
The scrutiny reflects broader regulatory attention on fintech apps, which many Americans use as a primary banking service. Block did not immediately respond to a request for comment.
Source: TechCrunch