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SettlementCritical RiskMultistate

Multistate Settlement with Block Inc. Over Deceptive Cash App Practices

Block, Inc.July 8, 2026Virginia Attorney General

Penalty Amount

$45,000,000

Summary

Block, Inc., the parent company of Cash App, agreed to a $45 million multistate settlement with 46 states for misleading consumers about the safety of Cash App and failing to protect users from fraud. The settlement requires Block to improve customer support, stop deceptive marketing, and fulfill legal obligations to investigate fraud and reimburse unauthorized transactions.

Remedy

Block must pay $45 million to the states, implement and maintain responsible practices including 24/7 customer support with live phone and chat, stop false safety claims, discontinue marketing that increases fraud, educate consumers about fraud, and fulfill obligations to investigate and reimburse unauthorized transactions. Additionally, Block reaffirmed its commitment to distribute $75-120 million to consumers as part of a separate CFPB settlement.

Monetary PenaltyInjunctionConsent DecreeConsumer RefundsCorrective Notice

Contract Impact

In-house legal teams should review vendor agreements with payment processors and financial technology providers, focusing on clauses related to fraud protection and resolution, customer support obligations (including availability of live support by phone and chat), identity verification procedures, and reimbursement policies for unauthorized transactions. Marketing and promotional clauses should be reviewed to ensure they do not encourage practices that increase fraud risk. Service level agreements (SLAs) for customer support response times and fraud investigation timelines should be strengthened. Data processing agreements should include clear obligations for the vendor to maintain adequate security measures and to promptly notify the customer of any fraud incidents.

Contract Search Terms

fraud protectioncustomer supportunauthorized transactionsidentity verificationdirect depositconsumer educationfraud investigationreimbursement obligationsmarketing practicesaccount lockouts

Laws Cited

State consumer protection lawsConsumer Financial Protection Act

Violation Types

Entity Details

Entity

Block, Inc.

Industry

Technology

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Block, Inc."
Fine Amount
"$45 million multistate settlement"
Violation Types
"misled consumers about the safety of Cash App"
Violation Types
"failed to protect users from fraud on the platform"
Remedy Types
"implement and maintain responsible practices"
Remedy Types
"distribute between $75 million and $120 million to compensate consumers"

Related Enforcement Actions

TX

Block, Inc.

$45.0M

Attorney General Ken Paxton secured a $45 million multistate settlement with Block, Inc. (Cash App) for misleading consumers about the safety of its platform and failing to protect users from fraud. The settlement requires Cash App to maintain 24-hour customer support, cease deceptive safety claims, and fulfill its legal duty to investigate and reimburse unauthorized transactions.

NY

Block, Inc.

$45.0M

New York Attorney General Letitia James and a bipartisan coalition of 45 other attorneys general secured $45 million from Block, Inc., the company behind Cash App, for misleading users about the platform's security and failing to protect them from fraud. The settlement requires Block to implement changes including maintaining live customer support, stopping misleading marketing, and fulfilling legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.

CT

Block, Inc.

$45.0M

Attorney General Tong announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform, failing to protect users from fraud, and not providing promised fraud protection and resolution services. The settlement requires Block to implement major reforms including real customer support, transparent communications, and security commitments, and reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers as part of a separate CFPB settlement.

NJ

Block, Inc.

$45.0M

Block, Inc. agreed to a $45 million multistate settlement with 46 states for allegedly misleading consumers about the safety of Cash App, failing to protect users from fraud, and not providing promised fraud protection. The settlement requires Block to improve customer support, stop misleading claims, and educate consumers about fraud.

CO

Block, Inc.

$45.0M

Attorney General Phil Weiser announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform and failing to protect users from fraud. The settlement requires Block to implement antifraud measures, provide customer support, and stop deceptive marketing practices.

MN

Block, Inc.

$45.0M

Attorney General Keith Ellison announced a $45 million multistate settlement with Block, Inc., the company behind Cash App. The settlement resolves allegations that Block misled consumers about the safety of Cash App, failed to protect users from fraud, and did not provide promised fraud protection and resolution. Block agreed to implement responsible practices including maintaining customer support, offering live support, stopping misleading claims, and fulfilling legal obligations to investigate fraud and reimburse users.