By FOX23.com News Staff
OKLAHOMA CITY — Oklahoma Attorney General Gentner Drummond announced a settlement in a multistate lawsuit against Block Inc., the company behind Cash App.
Drummond said the $45 million settlement resolves allegations that Block misled consumers about the app’s safety and failed to protect users from fraud.
“Cash App told Oklahomans their money was safe while fraud on the platform was climbing and the company did nothing to stop it,” said Drummond. “Companies that build a product around handling people’s paychecks and benefits don’t get to treat customer protection as optional. This settlement forces Block to actually deliver the safeguards it promised to the people who trusted it with their money.”
Under the settlement, Block must provide live customer support daily, educate users about common scams, and investigate and reimburse fraud claims as required by law, Drummond said.
Drummond said the settlement also requires Block to end what he described as “fraud-linked marketing practices,” including “Cash App Fridays,” which he said encouraged users to publicly share their account IDs.
Oklahoma will receive nearly $525,000 as part of the settlement.
The full consent order is available here.
A company spokesperson for Block shared the following statement with FOX23:
“We’ve reached an agreement that 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. We share the commitment of the attorneys general to addressing industry challenges and continue to invest in operations and technology to promote a safe and healthy financial ecosystem.”
