Cash App owner Block to pay $45M to settle allegations of lax security

Source: The Record

The owner of Cash App will pay dozens of states a total of $45 million to settle allegations that it misled its users about the payment app’s security and exposed them to fraud. State attorneys general announced the bipartisan agreement with Block, Inc. on Jul. 8, saying that the company incorrectly promised users that Cash App offered the same protections as a bank. “Lax verification standards, a years-long absence of phone support, and deceptive social media promotions left users exposed to scammers,” said Texas Attorney General Ken Paxton. “Nevertheless, Cash App delayed internal fraud investigations and set unwarranted account lockouts which left victims with no way to recover stolen funds.” Texas will receive $5 million under the agreement, and New York will get $1.6 million. States with smaller populations are receiving less than $1 million. Full Story