How Much AL Will Receive As Part Of $45M Cash App Settlement

MONTGOMERY, AL — The state of Alabama will receive nearly $600,000 as part of a $45 million multistate settlement with Block Inc., the parent company of the popular peer-to-peer payment platform Cash App.

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Attorney General Steve Marshall announced Thursday that the settlement resolves allegations that Block misled consumers about the safety of Cash App, failed to adequately protect users from fraud, and did not provide the fraud investigations and reimbursements required under state and federal consumer protection laws.

Alabama's share of the settlement totals $595,421.

"We have long advised consumers to use caution when using peer-to-peer programs for payments. This settlement sends a clear message that companies offering these services must be transparent, secure, and accountable," Marshall said in a statement. "Our office will continue to hold bad actors responsible and fight to ensure that consumers are protected in the digital marketplace."

Marshall said investigators found that Block marketed Cash App as a safe alternative to traditional banking while failing to address growing fraud on the platform.

Officials also say the company aggressively encouraged users to deposit paychecks and government benefits directly into Cash App, particularly targeting unbanked and underbanked consumers who often relied on the app as their primary financial account.

The investigation alleged that several of Cash App's practices made fraud easier, including:

• Cash App's sign-up process required minimal identity verification, making it easier for scammers to create fraudulent accounts.
• The company offered no customer phone support for years, forcing locked-out users to seek help online, where many fell victim to fake customer service phone numbers operated by scammers.
• Block continued running its "Cash App Fridays" social media promotion despite knowing fraudsters were using the campaign to trick users into surrendering login credentials.
• The company frequently failed to investigate unauthorized transactions or issue refunds when required by law, leaving many fraud victims without access to stolen funds.

The settlement also addresses complaints from users who were locked out of their accounts for weeks after automated fraud detection systems flagged transactions, preventing them from accessing money needed for everyday expenses.

As part of the agreement, which does not require Block to admit wrongdoing, Block must make significant changes to how it operates Cash App.

This resulted in the company agreeing to:

• Maintain customer support capable of resolving fraud complaints and account lockouts.
• Provide 24-hour live support with phone and chat availability.
• Stop making misleading claims about the platform's security.
• Discontinue marketing practices that contribute to fraud, educate users about common scams.
• Comply with legal requirements to investigate fraud reports and reimburse customers for unauthorized transactions.

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