Attorney General Phil Weiser announces $45M nationwide settlement with Block, Inc. over deceptive practices on Cash App

Attorney General Phil Weiser announces $45M nationwide settlement with Block, Inc. over deceptive practices on Cash App

July 8, 2026 (DENVER) - Attorney General Phil Weiser 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 allegations 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 that it promised and that was required by law. Colorado was one of the main states on the case and will receive $1,663,539 from the settlement.

"For years, Block told consumers that their money was safe using Cash App, just like with a bank. Yet, the company knew this wasn't true and that their fraud prevention measures were flawed and even enabled fraud. And when something went wrong-an account lock out or account suspension for example-consumers had nowhere to go for help. Today's settlement requires Block to implement antifraud measures and provide customer support to resolve account issues, among other things. We'll continue to hold companies accountable when they violate our consumer protection and consumer lending laws," said Attorney General Weiser.

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, which 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 and searched online for a phone number 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 account 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 experienced 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 when required by law.

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

• Maintain customer support that can resolve fraud complaints, account lockouts, and other problems.
• 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 and 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 Consumer Financial Protection Bureau. Additional information regarding the CFPB's settlement is available at: https://www.consumerfinance.gov/enforcement/actions/block-inc/ (opens new tab) and https://cashappcfpbsettlement.com/ (opens new tab).

A copy of the consent order is available on our website (PDF).

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Media Contact:
Lawrence Pacheco
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(720) 508-6553 office
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