Kris Mayes Joins $45 Million Settlement Against Cash App Over Fraud Failures

If you've ever used Cash App and wondered whether your money was truly safe, Attorney General Kris Mayes (D-AZ) has some news, and it turns out the company behind the app wasn't being straight with its users.

Mayes announced this week that Arizona has joined a $45 million multistate settlement with Block, Inc., the company that operates Cash App, resolving allegations that the popular peer-to-peer payment platform misled consumers about its safety, failed to protect users from fraud, and didn't deliver the protections it promised, or was required by law to provide.

Now, Arizona will receive $761,415 from the settlement.

"Block told Cash App users their money was safe — implying that the app worked like a bank, with the same protections, which wasn't true," Mayes said. "At the same time, Block knew fraud on its platform was rising sharply — and instead of warning users or strengthening protections, it doubled down on marketing."

Long-Time Problems

The problems ran deep: Cash App's sign-up process was deliberately fast and easy, with minimal identity verification, making it just as simple for fraudsters to create accounts as for legitimate users.

However, for years, the app offered no phone support whatsoever, leaving users who needed help with nowhere to turn.

Many searched online for a Cash App phone number and ended up calling fake lines run by scammers who then drained their accounts. Block knew this was happening and didn't act for years.

The company also ran a social media promotion called Cash App Fridays, encouraging users to publicly post their unique Cash App identifier for a chance to win prizes.

Fraudsters used those public posts to contact users, claim they had won, and trick them into handing over their login credentials. Block kept the promotion running despite knowing about the scam.

Under the settlement, Block must now maintain round-the-clock customer support, offer live phone assistance at least 13.5 hours a day, stop making misleading safety claims, and fulfill its legal obligation to investigate fraud and reimburse users for unauthorized transactions.

The settlement builds on a separate agreement with the Consumer Financial Protection Bureau, through which Block has committed to distributing between $75 million and $120 million directly to affected consumers nationwide.