Block to Pay $45 Million to Settle Cash App Fraud Case

Cash App is a peer-to-peer payment service operated by Block, and many users treat it as a bank account. Attorneys general from 46 states alleged that the platform allowed people without Social Security numbers or birth dates to open large numbers of accounts and failed to properly investigate unauthorized transactions. On January 16, 2025, the U.S. Consumer Financial Protection Bureau ordered Block to pay up to $175 million in penalties and consumer redress, underscoring that fintech companies are also responsible for consumer protection.

On July 8, 2026, Oregon and Texas announced that Block had agreed to pay $45 million to settle the 46-state investigation without admitting wrongdoing. The agreement requires Cash App to stop overstating its security and fraud-prevention capabilities, maintain round-the-clock access to live customer-service representatives, investigate fraud, issue refunds as required by law and fulfill the consumer-redress agreement reached with the U.S. Consumer Financial Protection Bureau in 2025.