Cash App to Pay $15 Million Settlement for Data Breach and Account Access Issues

Block Inc., the parent company of Cash App and Cash App Investing, has agreed to pay $15 million to users as part of a class-action settlement. The case stemmed from an incident in 2022 when a former employee gained unauthorized access to customer data. According to Block’s SEC report, notifications regarding the breach were sent to approximately 8.2 million current and former users.

The lawsuit alleges that Block was negligent again in 2023, allowing unauthorized access to certain Cash App accounts through reactivated phone numbers linked to those accounts. The company is also accused of failing to implement adequate account protection measures and insufficiently addressing customer complaints about unauthorized transactions.

While denying liability, Block and Cash App Investing agreed to settle the case for $15 million in early 2024. The compensation is designated for users whose accounts experienced unauthorized access between August 23, 2018, and August 20, 2024.

To file a claim, users must meet one of the following criteria: be a Cash App or Cash App Investing user, experience unauthorized access to their account, or identify illicit withdrawals or transfers within the specified period. The deadline to submit a claim or opt out is November 18, 2024, at 10:59 p.m. PST.

Users who received notice of compensation by mail or email can enter their notification ID and confirmation code on the dedicated website. Those who did not receive notification but believe they were affected can complete an online form.

If approved by the court, users may receive up to $2,500 for direct losses caused by data security incidents or unauthorized account access. Documentation linking the losses to the incident will be required.

Additional compensation is available for lost time at $25 per hour (up to 3 hours) and documented losses from unauthorized transactions. For the latter, a copy of the unauthorized access notification, police report, or other verification is needed. Further details about the settlement payouts can be found here.

The timeline for disbursements remains unspecified. The final hearing to approve the settlement is set for January 13, 2025, pending court approval.

In August 2022, reports surfaced that fraudsters were transferring funds from hacked Cash App accounts to their own. At the time, the available balance in compromised Cash App accounts ranged from $1,000 to $5,000. The exact amount of damages remains undisclosed.