Block, which operates the money transfer app Cash App, has agreed to a 45 million dollar settlement with US state authorities over inadequate responses to fraud victims and misleading statements about safety. According to an announcement by the New York State Attorney General's office, a bipartisan coalition led by New York Attorney General Letitia James and 45 other state attorneys general alleged that Block failed to adequately protect users from fraud and scams, and misled users about the safety of Cash App. The authorities pointed out that while Block marketed Cash App as a service with protections comparable to traditional banks and stated in its terms of service that it had state-of-the-art fraud detection technology, it actually lacked a consistent fraud detection system and did not maintain an effective hotline for reporting fraud. Under the settlement, Block must maintain customer support systems to handle fraud complaints and account locks, and provide 24-hour live support. It is also required to stop making false or misleading claims about Cash App's safety, investigate allegations of unauthorized transactions, and fulfill its obligation to refund unauthorized transactions. Block denied wrongdoing in the consent judgment.
Block, IncBlock settled with 46 state attorneys general for $45M over inadequate fraud handling and misleading safety claims, and must improve customer support.