Block Inc., the parent company of Cash App and Cash App Investing, has agreed to pay $15 million to users as part of a settlement in a class action lawsuit. The lawsuit stemmed from a former employee gaining unauthorized access to customer data in 2022. According to a SEC report from Block, approximately 8.2 million current and former users were notified of this incident.
The claim alleges that Block was negligent in 2023, allowing unauthorized individuals to access some Cash App accounts by reactivating phone numbers linked to the accounts. The company is also accused of failing to implement necessary security measures to protect accounts and inadequately addressing customer complaints of unauthorized transactions.
Despite denying any wrongdoing, Block and Cash App Investing agreed to settle for $15 million in early 2024. The compensation is intended for users whose accounts were accessed without authorization between August 23, 2018 and August 20, 2024.
To be eligible for compensation, users must meet certain criteria such as being a Cash App or Cash App Investing user, experiencing unauthorized account access, or noticing unauthorized transactions during the specified period. The deadline to file a claim or opt out of the lawsuit is November 18, 2024 at 22:59 (PST).
Users who received a notification of compensation via mail or email can input their notification ID and confirmation code on a designated website. For those who did not receive a notification but believe they are eligible, an online form can be filled out.
If approved by the court, users may receive up to $2,500 for direct losses due to data security incidents or unauthorized account access. Supporting documentation linking the losses to the incident will be required. Compensation for lost time at $25 per hour (up to 3 hours) and losses from unauthorized transactions are also possible with appropriate proof.
Details on payment amounts have not been finalized. The final court hearing on the settlement agreement has been rescheduled for January 13, 2025 for court approval.
In August 2022, reports surfaced of scammers transferring funds from compromised Cash App accounts for personal gain. The stolen funds from hacked Cash App accounts ranged from $1,000 to $5,000, though the total amount of the losses was not disclosed.