The recent Cash App settlement has caught the attention of millions of users, sparking curiosity about refunds, eligibility, and potential payouts. If you’ve ever used Cash App, you’re probably worried about whether you’ll receive a refund or how the issue will impact your account. Let’s look at the settlement details and what you need to know to keep your assets safe and ensure you don’t miss out on any potential payout.
This blog post will explain the Cash App settlement, including its reasons, who was eligible for a refund, and how to get your money back. We’ll also discuss important dates to remember and how never to miss a refund. By the end of this post, you will have learned everything about the settlement, regardless of whether you are a frequent user or new to Cash App.
Table of Contents
Background of Cash App and Its Legal Challenges
Cash App Overview
Cash App is a well-known peer-to-peer money transfer app launched in October 2013. The service enables users to transfer money, trade equities, and buy and sell cryptocurrencies. In 2023, the company had an overall revenue record of $14.6 billion and had about 57 million users in February 2024.
Data Breaches and Security Incidents
Despite its popularity, Cash App has a history of security problems. Specifically:
- December 2021 Data Breach: A former employee accessed and downloaded reports containing sensitive customer data, including full names, brokerage account numbers, portfolio values, and stock trading activity. This breach affected approximately 8.2 million users.
- September 2023 Security Breach: In September 2023, unauthorized persons accessed Cash App accounts through reused phone numbers previously assigned to other users, potentially exposing personal data. It sparked worries about user data privacy and account security.
Cash App Lawsuit Settlement
1. Data Breach Settlement:
Block, Inc. agreed to a $15 million settlement in a class-action lawsuit in August 2024. According to the lawsuit, Cash App failed to adequately secure user data against access by a former employee in 2021 and an unidentified hacker in 2023. Customers who qualify may receive compensation for fraudulent transactions or unauthorized access to their accounts between August 23, 2018, and August 20, 2024. They can get reimbursement for total out-of-pocket spending up to a limit of $2,500.
2. Regulatory Fines:
Block, the parent company of Cash App, has agreed to settle fraud and control allegations on its payment network for as much as $255 million by January 2025. This payment includes:
- $80 Million Fine to State Regulators: The penalty of $80 million will be shared with all 48 state regulators. It is mainly due to the block’s failure to stop illegal activities like money laundering and terrorist financing.
- $175 Million Through the CFPB Settlement: Cash App must refund its scam consumers as much as $120 million and pay $55 million in penalties, per the Consumer Financial Protection Bureau (CFPB) orders.
CashApp will also implement enhanced fraud prevention and customer service capabilities. Moreover, it will use AI to upgrade fraud detection processes and provide live support 24/7.
Who is Eligible for the Cash App Settlement?
The specific criteria for each settlement are as follows:
1. Cash App Data Breach Settlement (2024):
The requirements for this settlement included:
- Active Account Period: Any user with an active Cash App account between August 23, 2018, and August 20, 2024.
- Unauthorized Access or Fraudulent Transactions: Account holders whose accounts were accessed without appropriate authority or experienced unauthorized or fraudulent withdrawals or transfers between the dates indicated.
- Documentation of Losses: Applicants must document all out-of-pocket damages, such as bank fees, credit monitoring fees, or other expenses brought on by unauthorized access, before they may submit claims.
2. Cash App Customer Service and Fraud Handling Settlement (2025):
The criteria for this settlement include:
- Fraudulent Transactions: Clients who reported error notices of unauthorized transfers up to July 1, 2019, were not refunded or given unhelpful feedback. Some customers also had their accounts locked unjustifiably for at least 14 days.
Everyone in both settlements should watch for updates from Cash App or Block, Inc. on payouts and the next steps.
Cash App Settlement Payout Per Person
The number of valid claims filed under the Cash App settlement will determine the amount each participant receives. Payment can be reduced individually if there are more claims than available funds within the $15 million settlement fund. Members who have established out-of-pocket damages through fraudulent transactions or unauthorized use may qualify for a maximum of $2,500. Moreover, for as many as three hours spent resolving problems, they may receive $25 per hour, up to a maximum of $75.
Cash App Settlement Payout Date
Following is the timeline of the Cash App class-action settlement in 2025:
- $15 Million Class-Action Settlement (August 2024): The court held the final approval hearing on January 13, 2025. Once the court approves the settlement, the administrator usually releases the settlement monies a few months later. Therefore, the qualifying claims are expected to be paid by mid-2025 or early 2026.
- $255 Million Settlement with Federal and State Regulators (January 2025): The public is not currently informed about the payout date for user refunds. Such payouts usually occur after finalizing the settlement and completing specific administrative procedures. Therefore, monitor official communications from Cash App or the CFPB for reliable updates.
How to File a Cash App Settlement Claim
The Cash App compensation claims were submitted by November 18, 2024. On cashappsecuritysettlement.com, the official settlement website, you may see the status of your claim. For further assistance or information, you can also call the Settlement Administrator.
At the same time, the CFPB ordered Block, Inc., Cash App’s parent company, to issue up to $120 million in refunds. Customers affected don’t have to do anything to receive a refund. Block Inc. has 120 days to submit a repayment plan to the CFPB outlining how it will pay back all eligible customers. Therefore, check official announcements from Cash App and the CFPB for updates on possible future claim opportunities.
Essential Tips to Protect Your Cash App Account
The recently revealed security breach at Cash App requires you to protect your account and personal information. Some of the basic things include
- Turn on two-factor verification: Using 2FA, which requires you to authenticate yourself differently before granting access to your account, adds a layer of security on top of your standard password.
- Employ secure, one-of-a-kind passwords: When creating strong passwords, use letters, numbers, and symbols. Make sure your passwords are different for every website.
- Account Activity: Always carefully review the transaction records to identify and promptly report illegal behavior.
- Watch out for Phishing Attacks: Always double-check whether a communication is from Cash App, especially when asking for some confidential information.
- Stay Informed: To get the most out of security measures, it is beneficial to read Cash App’s most recent updates on security features and best practices.
By taking these precautions, you can protect your privacy and secure your Cash App account.
Conclusion
In conclusion, the Cash App settlement for multiple legal infractions and security defects led to millions of dollars in user refunds. Your illegal transactions, access, or account activity qualifies you. The settlement includes class-action suits, state penalties, and CFPB-mandated payments. Furthermore, those who submit claims before the November 2024 deadline may receive payments by mid-2025 or early 2026.
Finally, this case clearly shows how important it is for financial platforms to protect users and follow the law. Users must also stay vigilant about account security, even with Block, Inc.’s improved safety and customer service promises. It highlights that strong security measures and clear consumer protection are essential for digital money safety.
FAQs
In January 2025, Block, Inc., the owner of Cash App, agreed to a nearly $255 million settlement. The settlement addressed the company’s failure to ensure platform security and prevent fraudulent activities. It includes an $80 million payment to the state regulators and a $175 million settlement with the CFPB. The CFPB settlement consists of a $55 million penalty and compensation to all users affected, totaling $120 million.
Those who experienced fraudulent or unauthorized transactions from August 23, 2018, to August 20, 2024, are eligible for payments from the Cash App settlement. However, they must present a legitimate claim before November 18, 2024, to demand small compensation.
Payments will probably come by check or direct deposit, depending on the preferences you entered when you filed your claim. Additionally, Check your email or the official settlement website for payment updates and required actions.
If you have more than one Cash App account, you can only submit one claim form for the settlement. To ensure consideration for all applicable accounts, provide all your $Cashtag identifiers.
Suppose your contact details change anytime after filing a Cash App settlement claim. In that case, you must inform the Settlement Administrator to receive any correspondence and potential compensation. Further, contact the Settlement Administrator at 1-866-615-9740 or info(at)cashappsecuritysettlement.com to view, make modifications, or correct any information.
