Block to Pay $45 Million to Settle State Claims Over Cash App Fraud Protections, Denies Wrongdoing

Block agreed to pay $45 million to settle claims brought by 46 U.S. states that Cash App failed to adequately protect users from fraud, TechCrunch reported. State attorneys general said the company misled users by falsely advertising bank-like protections, including advanced fraud detection.

Block denied wrongdoing in the settlement. According to the states, Cash App allowed users to create accounts without a Social Security number or date of birth and placed no limits on the number of accounts one person could open. The states also said Cash App did not provide an official customer support phone number, leading some users locked out of accounts to contact fake numbers run by scammers.

The settlement requires Block to improve Cash App’s fraud prevention measures and customer service, including by offering live customer support. The Consumer Financial Protection Bureau had previously imposed $175 million in penalties and redress on Block after accusing the company of failing to investigate fraud claims or provide adequate service.

News of the settlement was first reported by Reuters.

Block did not immediately respond to TechCrunch’s request for comment.