the block is Agreed to pay $45 million To settle claims brought by 46 US states alleging that its peer-to-peer payments app, Cash App, failed to adequately protect users from fraud.
The state attorney general said he found that Block misled users by falsely advertising that Cash App offered bank-like security, including advanced fraud detection. Block denied wrongdoing.
According to the states, Cash App allowed users to create accounts without a Social Security number or date of birth, and placed no limits on the number of accounts a person could open, making it easy for scammers to exploit the platform. The states also alleged that since Cash App did not provide an official customer support phone number, many users whose accounts were locked began using fake customer service numbers, which were operated by scammers.
The settlement marks the latest chapter in regulators’ investigation of Cash App’s business practices, following earlier actions Consumer Financial Protection Bureauwhich was Similarly the accused block Failure to investigate fraudulent claims or provide adequate customer service resulted in a $175 million fine and other settlements to consumers.
Under the new agreement, Block will improve Cash App’s fraud prevention measures and customer service, including providing live customer support for users of the mobile payments platform.
Who was the first to break the news of the agreement? reuters. The block did not immediately respond to TechCrunch’s request for comment.
