Block Pays $45 Million to Settle 46-State Probe Into Cash App Fraud Protection and Resolution

Block will pay $45 million to settle allegations from 46 states that the company misled consumers about the safety of its peer-to-peer payments app, Cash App, and failed to provide the fraud protection and resolution required by law.

The investigation was led by Oregon and Texas, the Oregon Department of Justice said in a Wednesday (July 8) press release.

The states alleged that Block falsely implied that Cash App offered the same protections as a bank, that Block made it easy for fraudsters to create accounts by requiring minimal identity verification to sign up for the app, that Cash App had no phone support for years and didn’t warn users that scammers were posting fake numbers and posing as Cash App, and that Block continued running a social media promotion that it knew was being used by fraudsters to trick users into handing over their login information, according to the release.

The settlement requires Block to maintain customer support that can resolve problems, offer live phone support 24 hours a day, stop making false or misleading claims about Cash App’s safety and fraud protections, discontinue marketing practices that are known to increase fraud, educate consumers about fraud, and fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions, per the release.

Oregon Attorney General Dan Rayfield said in the release: “Cash App told people their money was safe, and millions of Oregonians and Americans believed them, including a lot of people who didn’t have other options. When things went wrong, Block left them with nowhere to turn.”

Texas Attorney General Ken Paxton said in a Wednesday press release: “When Texans trust a financial platform with their paychecks, savings and family’s security, they deserve to be fully protected as promised. I will make sure that they are.”

Reached by PYMNTS, Block said in an emailed statement that the multistate settlement “resolves a previously disclosed legacy matter that primarily relates to historical aspects of our business.”

“Cash App has made significant investments in consumer protection, customer service and compliance in order to safeguard and serve the tens of millions of Americans who rely on Cash App to meet their banking and credit needs,” the company said.

According to the Oregon Department of Justice press release, the multistate settlement also ensures that Block will pay the restitution that was part of a January 2025 settlement with the U.S. Consumer Financial Protection Bureau (CFPB).

That settlement involved similar conduct by Cash App and included restitution to consumers nationwide of between $75 million and $120 million.

PYMNTS reported in January 2025 that the CFPB said of the settlement: “Block employed weak security protocols for Cash App and put its users at risk.”

Even if the CFPB were to cancel that settlement, as it has done with several other settlements under the current U.S. administration, Block’s obligation to pay restitution would be absorbed into Oregon’s settlement, per the Wednesday press release.

In another, separate case, Washington, which participated in the multistate settlement, announced in a Wednesday press release that it also resolved another dispute with Block.

In that case, the state reached a settlement resolving its investigation into whether Block failed to maintain anti-fraud controls to detect suspicious transfers of unemployment benefits during the pandemic. The Washington Attorney General’s Office alleged that the company violated the state’s Consumer Protection Act with its actions around fraudulent transfers made by criminals using stolen personally identifiable information.

Block said in a statement provided to PYMNTS: “We’ve reached an agreement to resolve a legacy matter solely related to pandemic-era unemployment insurance payments in Washington State. We share the attorney general’s commitment to a healthy and secure financial system and are pleased to be putting this matter behind us.”