MONTGOMERY, AL — Alabama Attorney General Steve Marshall announced Wednesday that Alabama will receive $595,421 as part of a $45 million multistate settlement with Block, Inc., the company behind the Cash App mobile payment platform.
The settlement resolves allegations that Block misled consumers about the safety of Cash App, failed to adequately protect users from fraud, and did not provide the fraud protection and customer assistance required by law when users experienced unauthorized transactions or account issues.
According to the Attorney General’s Office, the investigation found that Block promoted Cash App as a safe way to store and transfer money while fraud on the platform increased. Investigators alleged the company expanded its user base, including consumers who relied on Cash App as their primary financial account, without providing sufficient safeguards or customer support.
Attorney General Marshall said the settlement reinforces the responsibility of companies offering peer-to-peer payment services.
“We have long advised consumers to use caution when using peer-to-peer programs for payments. This settlement sends a clear message that companies offering these services must be transparent, secure, and accountable,” Marshall said. “Our office will continue to hold bad actors responsible and fight to ensure that consumers are protected in the digital marketplace.”
State officials alleged several practices contributed to fraud on the platform, including minimal identity verification during account creation, the lack of phone-based customer support for several years, and marketing campaigns that scammers allegedly exploited to target users.
The investigation also found that some customers who were locked out of their accounts or reported fraudulent activity experienced lengthy delays in receiving assistance or reimbursement.
As part of the settlement, Block has agreed to implement several changes, including:
- Maintaining customer support to address fraud complaints, account lockouts, and other account issues.
- Providing live customer support by phone and chat for extended hours each day.
- Ending false or misleading statements regarding Cash App’s safety and fraud protections.
- Discontinuing marketing practices identified as increasing fraud risks.
- Educating users about common scams targeting Cash App customers.
- Investigating fraud claims and reimbursing users for unauthorized transactions when required by law.
The investigation was led by the attorneys general of Oregon and Texas and included 46 participating states.
