Jack Dorsey’s Block agreed to a $45 million multistate settlement after 46 U.S. states alleged Cash App misled users about fraud protections and failed to provide the help required when accou
Jack Dorsey’s Block agreed to a $45 million multistate settlement after 46 U.S. states alleged Cash App misled users about fraud protections and failed to provide the help required when accounts were hit by scams.
The settlement covers claims tied to Cash App’s consumer-protection practices, fraud response, account security and customer-service systems. Block did not admit wrongdoing, but the agreement requires the company to change how it handles complaints, support and fraud prevention.
State investigators alleged that Cash App advertised bank-like safety while allowing accounts to be opened with limited identity information, including cases where users could create accounts without a Social Security number or date of birth. The probe also focused on fake customer-service scams, where users searching for help were pushed toward fraudsters because Cash App did not offer stronger live phone support.
Block must maintain customer support capable of resolving fraud complaints, account lockouts and other user problems. The settlement requires 24-hour support, with a human available by phone for at least 13.5 hours per day and by live chat for at least 18 hours per day.
The company must also stop making false or misleading claims about Cash App’s safety, discontinue marketing practices known to increase fraud risk and educate users about common scam patterns. The requirements go directly at the pressure points that regulators said allowed scams to spread across the app.
Cash App has continued to expand beyond peer-to-peer transfers into broader consumer finance and crypto payments. The app recently opened USDC transfers across Solana, Ethereum, Polygon and Arbitrum, giving eligible users a way to send and receive stablecoins through public blockchain networks while keeping the consumer-facing balance in dollars.
The new state settlement follows earlier federal and state actions over Cash App controls. The CFPB ordered Block to provide up to $120 million in consumer redress and pay a $55 million penalty in 2025 over unauthorized-transfer handling, fraud investigations and customer-service failures.
The regulatory pressure has landed while Block has been cutting costs and reshaping its operating structure. Dorsey defended the company’s efficiency push after Block’s mass layoffs put him on the hook for a $68 million company party, arguing that Block had over-hired during the pandemic and later corrected its Square and Cash App structure.
The $45 million state settlement adds another consumer-protection order to Block’s Cash App docket, with live phone support, fraud education and stricter safety claims now written into the company’s required operating changes.
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