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States Secure $45 Million Settlement With Block Over Cash App Fraud Failures

Requiring Block to implement binding customer-protection reforms, the agreement also secures $75 million to $120 million in consumer relief under a prior CFPB deal.

Overview

  • Block agreed to the $45 million multistate settlement on Wednesday, July 8, 2026, resolving allegations that Cash App misled users about safety and failed to protect or assist victims of fraud.
  • The settlement imposes specific operational reforms including keeping customer-support that can resolve fraud complaints, offering live phone support at least 13.5 hours a day and live chat at least 18 hours a day, investigating fraud claims, and reimbursing users for unauthorized transactions.
  • The deal outlaws misleading safety and marketing claims, stops promotions known to increase fraud, and requires direct consumer education about common scams.
  • Forty-six states joined the action, led by Oregon and Texas, with California set to receive $2.9 million and Minnesota about $639,000 from the $45 million pool.
  • By requiring Block to honor a prior CFPB consumer-redress program that will deliver at least $75 million and up to $120 million to harmed users, the settlement creates a state-level backstop that preserves consumer payments if federal enforcement changes and could signal increased state oversight of fintechs that serve unbanked customers.