Cash App has agreed to pay users $15 million to settle a class-action lawsuit alleging data and security breaches on the mobile payment platform.
The settlement comes after customers sued Cash App and its parent company, Block, for allegedly not doing enough to stop unauthorized users, and then mishandling customer complaints about the breaches and fraudulent activity.
According to the lawsuit, Cash App “failed to take reasonable steps to safeguard consumer information in connection with a December 2021 data breach that resulted in the unauthorized public release of [personal identifiable information] of 8.2 million current and former Cash App Investing customers.”
The lawsuit goes on to say that Cash App’s “failure to take adequate security measures” following the first data breach led to a second data breach in 2023, where users’ accounts were allegedly accessed without their authorization and resulted in unauthorized transactions.
The plaintiffs also said that multiple Cash App users have complained about the company’s process for addressing payment errors. Some users said it was “nearly impossible” to get a Cash App representative on the phone.
Cash App has agreed to pay $15 million to a settlement fund that will go toward awarding affected users up to $2,500 for out-of-pocket losses stemming from the breaches.
Although they’ve agreed to the settlement, Cash App and Block maintain that they did nothing wrong, according to the settlement site.
Users who had Cash App accounts open between August 23, 2018, and August 20, 2024 that were accessed without permission or had fraudulent transactions are eligible for the cash award.
Eligible Cash App users have until Nov. 18 to file a claim. The claims must include a brief description of the losses and third-party documentation such as receipts to support the losses.