Lansing, Michigan – Cash App built its reputation on speed. Money could move in seconds, paychecks could land directly in an account, and users without traditional banking relationships had a simple way to manage daily finances. But regulators say that convenience came with gaps that left consumers exposed when fraud struck.
Now Block, Inc., the company behind Cash App, has agreed to a $45 million multistate settlement over allegations that it misled users about the app’s safety, failed to prevent fraud and did not provide customer support and refunds required by law.
Michigan Attorney General Dana Nessel announced the agreement, under which Michigan will receive $936,540. The settlement also requires Block to strengthen fraud protections, improve live customer service and stop making misleading claims about how Cash App protects users.
“Customer safety should always be a top priority, and when a company misleads and fails to protect its users from fraud, it must be held accountable,” Nessel said.
“This settlement requires Cash App to maintain strong safeguards for consumers and commits the company to putting stolen money back into the pockets of Michigan residents.”
According to the states, Block promoted Cash App in ways that suggested users’ money carried protections similar to those offered by a bank. Regulators said that impression was not accurate. At the same time, fraud on the platform was rising, yet the company continued marketing direct deposits for wages and government benefits.
That outreach targeted unbanked and underbanked consumers, many of whom used Cash App as their main financial account. Regulators alleged that Block expanded rapidly without building enough support for customers who lost access to accounts or reported unauthorized transactions.
Several features also created openings for scammers. Cash App’s quick sign-up system used limited identity verification, making it easier for fraudsters to open accounts. For years, users had no official phone support and often searched online for help. Some reached fake customer service numbers operated by scammers who then took control of accounts or accessed other financial information.
The company also ran its Cash App Fridays promotion, encouraging people to post their public $cashtag for a chance to win prizes. Fraudsters used those posts to contact users, falsely claim they had won and trick them into sharing login details. Regulators said Block knew about the scams but continued the promotion for years.
Consumers also reported being locked out after automated security systems flagged transactions. Some waited weeks to regain access to their money. Fraud victims were sometimes left without reimbursement because investigations were delayed, unauthorized transactions were not properly reviewed or refunds were not issued when required.
Under the settlement, Cash App must maintain customer support capable of handling fraud complaints and account lockouts. Live support must be available around the clock, with human phone assistance for at least 13.5 hours each day and live chat for at least 18 hours.
Block must also educate users about common scams, end marketing practices known to increase fraud, investigate complaints properly and reimburse consumers for unauthorized transactions when legally required.
The agreement further reaffirms Block’s commitment to distribute between $75 million and $120 million to consumers nationwide through a separate settlement with the Consumer Financial Protection Bureau. Together, the actions put pressure on Cash App to match its promise of easy money movement with stronger protection when something goes wrong.