Block, the company chaired by Jack Dorsey, agrees to pay $45 million to settle claims brought by 46 U.S. states involving alleged mishandling of fraud on Cash App. According to state attorneys general and reports from multiple outlets, the states investigated whether Block misled users about the protections available on the peer-to-peer payments and digital-banking app. The allegations include claims that Block advertised Cash App as offering bank-like fraud safeguards, such as advanced fraud detection, but did not provide the level of fraud protection and resolution that state regulators said the law requires.
The settlement follows the attorneys general’s findings that Block’s marketing created an impression of enhanced safety features for transactions conducted through Cash App. The probe is described as being led by Oregon and Texas, with Oregon’s Department of Justice issuing details about the terms and basis for the settlement. The agreement resolves the multi-state action without the outlets describing an admission of wrongdoing by Block in the coverage provided.
