In a recent development, Cash App customers were eligible to claim compensation from a $15 million settlement addressing allegations of inadequate security measures. Plaintiffs accused Block, Inc. and Cash App Investing of failing to safeguard user data, resulting in unauthorized account access and transactions. While the companies denied any wrongdoing, they agreed to the settlement to avoid prolonged litigation costs and uncertainties.
The lawsuit highlighted notable security incidents:
- 2022 Breach: A former employee of Cash App Investing improperly accessed sensitive customer data without authorization.
- 2023 Incident: Unauthorized users accessed accounts via recycled phone numbers, raising concerns about Cash App’s security protocols and responses.
Plaintiffs claimed these lapses caused significant financial losses and inconvenience, citing negligence and insufficient response to customer complaints about fraudulent transactions.
Eligibility Criteria
Customers qualified as Settlement Class members if they:
- Were current or former users of Cash App or Cash App Investing (including affiliates, parents, or subsidiaries).
- Experienced unauthorized access to their personal information, Cash App, or Cash App Investing accounts.
- Faced fraudulent withdrawals, transfers, or unresolved errors in linked accounts between August 23, 2018, and August 20, 2024.
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Settlement Benefits
The settlement provided various forms of compensation to address damages caused by the alleged security failures.
Monetary Compensation
A $15 million fund was allocated to cover:
- Legal fees and administrative costs.
- Service payments for class representatives.
- Direct compensation to affected users who submitted valid claims.
Categories of Compensation
- Out-of-Pocket Losses:
- Claimants could receive up to $2,500 for expenses like credit monitoring, identity theft insurance, credit freezes, replacement payment cards, and associated fees (e.g., overdraft charges not refunded by banks).
- Lost Time:
- Reimbursement was available for up to three hours spent addressing security issues, compensated at $25 per hour.
- Transaction Losses:
- Documented financial losses resulting from unauthorized activities were reimbursed, provided they were not already covered by Cash App, insurers, or other financial institutions.
Pro-Rata Distribution
If valid claims exceeded the net settlement fund, payments would be reduced proportionally. Any remaining funds after satisfying claims could be redistributed among claimants or donated to charity, depending on the surplus amount.
Claim Submission Process
Eligible customers were required to submit claim forms by November 18, 2024. Claims could be filed online or via mail, with supporting documentation such as receipts, police reports, or correspondence proving losses and resolution efforts.
What’s Next for Claimants?
The court extended certain deadlines, rescheduling the final approval hearing to January 13, 2025. Following approval, payment schedules will be confirmed, with payouts expected 9 to 12 months after the final hearing. Claimants must update their contact details to ensure receipt of payments.
For further assistance, claimants can contact the Cash App Security Settlement Administrator at 1-866-615-9740.
Conclusion
The Cash App settlement represents a significant milestone in addressing alleged security lapses. It provides affected users a pathway for financial compensation and emphasizes the importance of robust security and responsive customer service in digital finance platforms.
For additional details, visit the Settlement FAQs or contact the settlement administrator.
Manish Kumar is a seasoned journalist and the Senior Editor at NewIndiaNetwork.com, with over a decade of experience in uncovering stories that matter. A leader both in the newsroom and beyond, he thrives on guiding his team to deliver impactful, thought-provoking content. When he’s not shaping headlines, you can find him sharing his insights on Twitter @humanish95 or connecting via email at manishdhanda60@gmail.com.
I have cash app for a while also have the Bitcoin thing going on Felt like I got scammed a couple of times with my money
How do I fle claim settlement Verizon Wireless. Shaunte Welborne
I have definitely had some strange things going on with this Cash App account a few times thru our the years
I filed a claim but find it hard to see it went through. How do I find out if my claim went through.
6615316178
They never gave me a card asked for pictures of my social security card my id they were scamming me
As of right now cash app is keeping $1200 from my account and it is my disability checks from October 2024 , and they won’t tell me how I can get it.
How do you know if you filed a claim
Waiting on my settlement
How do I see if I’m eligible ,
They would let me get the 15,000 that my friend sent to me
That money was for my new place to live and they were trying to charge me for that just to get my money so now I’m homeless thanks
I want in on cash app
I’m going to get this right on address 175 Jordan rd
Hiram GA 30141
Bridget Elaine mccoy