Attorney General Tong Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App

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07/08/2026

Attorney General Tong Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App

(Hartford, CT) - Attorney General William Tong today announced a $45 million multistate settlement with Block, Inc., the company behind the popular peer-to-peer payments app Cash App. The settlement resolves findings that Block misled consumers about the safety of Cash App, failed to protect users from fraud on the platform, and didn't provide the fraud protection and resolution services that it promised and that are required by law - to help people when things went wrong.

Connecticut will receive $1.5 million through today's settlement.

"Cash App was riddled with fraud, and the company did next to nothing to protect its customers from the devastating financial consequences. Today's settlement forces major reforms on the platform, including real customer support, transparent and honest communications with users, and security commitments. This resolution builds on the settlement reached between the Consumer Financial Protection Bureau and Cash App in January 2025, which included millions of dollars in direct financial relief to consumers who were the victims of fraud on the platform. Even with these new safety measures, peer-to-peer payment apps like Cash App do not have the same safeguards as traditional banking. Be very careful whenever using these types of apps. Never give your account information to someone you do not know, and monitor your account for suspicious activity regularly," said Attorney General Tong.

Block told Cash App users their money was safe - implying that the app worked like a bank, with the same protections, which wasn't true. At the same time, Block knew fraud on its platform was rising sharply - and instead of warning users or strengthening protections, it doubled down on marketing.

For years, Block actively promoted direct deposits of paychecks and government benefits into Cash App. It made a particular push to reach unbanked and underbanked consumers - people who would often rely on Cash App as their primary financial account, and who were especially vulnerable to fraud. Block grew its user base without making sure it could support those users when problems arose.

Block's policies didn't just fail to stop fraud - in several ways they made it easier:

• Block's sign-up process was designed to be fast and frictionless, with minimal identity verification. That made it easy for fraudsters to create accounts, not just legitimate users.
• For years, Cash App had no phone support. Users who needed help could only message through the app or on social media. People who got locked out - or just wanted to talk to someone - searched online for a phone number and often ended up calling fake 1-800 numbers run by scammers posing as Cash App. Those scammers would then take over accounts or drain users' other financial accounts. Block knew this was happening and didn't warn users or set up a real phone line until years later.
• Block ran a social media promotion called Cash App Fridays, encouraging users to publicly post their $cashtag - a unique Cash App identifier - for a chance to win a weekly prize. Fraudsters would then contact those users, tell them they'd won, and trick them into handing over their login information. Block knew about these scams and kept running the promotion anyway, for years.

Block's failure to provide adequate customer service and to fulfill its promise to protect users from fraud had real consequences for real people. Innocent users who experience automated account locks for suspicious transactions were frequently locked out of their accounts for weeks without a way to access their money. Victims of fraud through the app were often left with no recourse, because delays made it impossible to get stolen money back from scammers and because Block failed to investigate unauthorized transactions and failed to issue refunds required by law.

Under the settlement, Block has agreed to implement and maintain responsible practices to resolve these issues, including commitments to:

• Maintain customer support that can resolve fraud complaints, account lockouts, and other problems.
• Offer live support 24 hours a day, with a human available by phone at least 13.5 hours a day and by live chat at least 18 hours a day.
• Stop making false or misleading claims about Cash App's safety and how it protects users from fraud.
• Discontinue marketing practices known to increase fraud on the platform.
• Directly educate consumers about common types of fraud.
• Fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.

The multistate settlement also reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers nationwide as part of a settlement with the CFPB. Additional information regarding the CFPB's settlement is available at: https://www.consumerfinance.gov/enforcement/actions/block-inc/ and https://cashappcfpbsettlement.com/ or by calling the settlement administrator at 888-832-1301.

Oregon and Texas led the investigation, securing relief for all 46 participating states. A copy of the consent order is available here.

Attorney General Tong has urged consumers to be vigilant when using any "peer to peer" payment app. Below are some previously shared tips:

• Never give out information over the phone to someone purporting to be from the Company that issued you the account.
• When sending money, enter addresses carefully. It is easy to send money to type the wrong account address, and then very difficult, if not impossible, to retrieve it.
• Conduct regular reviews of your account to screen for suspicious activity.
• Make informed choices as a consumer. Review the terms of use of the account carefully. Don't assume that your rights to dispute a transaction using peer-to-peer applications are identical to those for your credit card account. They very well may not be.
• Understand the difference between authorized and unauthorized transactions.
• Take care to follow all the contract terms, especially registering your account. Consumers may waive their rights to company investigation and corrections if the account is not registered and/or the suspect transaction is not reported to the peer-to-peer app in a timely manner.

Assistant Attorneys General Amor Rosario and Katherine Hagmann-Borenstein and Deputy Associate Attorney General Michael Wertheimer, Chief of the Consumer Protection Section assisted the Attorney General in this matter.

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Media Contact:

Elizabeth Benton [email protected]

Consumer Inquiries:

860-808-5318 [email protected]

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