MONTGOMERY – Alabama will receive $595,421 from a $45 million multistate settlement with Block Inc. over allegations that its Cash App payment platform misled users about security, failed to adequately protect them from fraud, and did not properly investigate unauthorized transactions.

The Alabama Attorney General’s Office announced the agreement July 9. Alabama was among 46 states participating in the investigation, which was led by Oregon and Texas.

“This settlement sends a clear message that companies offering these services must be transparent, secure, and accountable,” Alabama Attorney General Steve Marshall said.

The agreement resolves allegations that Block presented Cash App as offering protections similar to a traditional bank while knowing that fraud on the platform was increasing.

State investigators said Block promoted Cash App for paycheck and government-benefit direct deposits, particularly among people without conventional bank accounts, without ensuring the company could provide adequate support when users encountered fraud, unauthorized transactions, or account lockouts.

States Detail Alleged Security and Support Failures

Investigators alleged that Cash App’s streamlined registration process required minimal identity verification, making it easier for criminals to create fraudulent accounts.

The states also said Cash App lacked telephone support for years. Users searching online for help sometimes encountered fraudulent customer-service numbers operated by scammers who attempted to obtain account credentials or gain access to other financial accounts.

Another concern involved the company’s former “Cash App Fridays” promotion, which encouraged users to post their unique $cashtags publicly for an opportunity to receive prizes. Investigators alleged that scammers used the public posts to contact participants, falsely claim they had won, and attempt to steal their login information.

Some users whose accounts were automatically locked because of suspected fraudulent activity allegedly remained unable to access their money for weeks. The states also accused Block of failing to properly investigate some unauthorized transactions and issue refunds when required by law.

Settlement Requires Stronger Customer Assistance

Under the settlement, Block must maintain customer support capable of addressing fraud complaints, account lockouts, and other problems.

The company must provide support around the clock, with a human representative available by telephone for at least 13½ hours each day and through live chat for at least 18 hours each day.

Block must also stop making false or misleading claims about Cash App’s safety and fraud protections, discontinue marketing practices known to increase fraud, educate users about common scams, properly investigate fraud claims, and reimburse unauthorized transactions when required by law.

In a statement issued during a separate federal enforcement case in 2025, Cash App said it had invested in customer support, fraud detection, payment warnings, and additional security measures. The company said it strongly disagreed with federal regulators’ characterization of its historical practices.

No New Individual Claims Process Announced

Alabama’s share of the $45 million multistate settlement is a payment to the state. The Attorney General’s Office did not announce a new claims process or direct payment program for individual Alabama Cash App users under this settlement.

However, the state agreement is separate from a January 2025 Consumer Financial Protection Bureau order requiring Block to provide between $75 million and $120 million in refunds and other compensation to certain affected users.

The federal redress covers qualifying consumers whose unauthorized transfers were not properly investigated, who did not receive refunds to which they were entitled, whose accounts were locked for extended periods, or who were not provided provisional credits during delayed investigations.

Consumers with questions about compensation under the federal order may contact Block’s designated redress line at 1-888-488-1181 or email CFPBinquiry@cash.app.

That number is separate from Cash App’s general customer-support number, 1-800-969-1940.

Cash App advises users to report unauthorized activity through the application or its official support channels as quickly as possible. The company also warns that legitimate representatives will never request a customer’s password, personal identification number, or complete debit-card number.

Alabama residents who believe they have been affected by deceptive business practices may also submit a consumer complaint to the Attorney General’s Office or call the state’s consumer hotline at 1-800-392-5658.

STATE NEWS