Block reaches $45M settlement with 46 states over Cash App fraud probe
TechCrunch
β’Thu, 09 Jul 2026 15:16:34 +0000
π° What Happened
Block (formerly Square) agreed to pay $45 million to settle claims from 46 U.S. states alleging Cash App failed to protect users from fraud. The states found that Cash App allowed account creation without a Social Security number or date of birth, had no limits on accounts per person, and lacked a customer support phone number, leading users to fake support lines operated by scammers.
π The Backstory
This settlement follows a separate $175 million penalty from the Consumer Financial Protection Bureau over similar issues. Cash App has been under increasing regulatory scrutiny as millions of Americans use fintech apps as their primary banking services. Block denied wrongdoing in the settlement but agreed to improve fraud prevention and customer service.
π― Why It Matters
The growing reliance on fintech apps for banking services has outpaced regulatory frameworks, making consumer protection a major policy issue. This settlement signals that state attorneys general are aggressively pursuing fintech companies over inadequate security measures.
Block (formerly Square) agreed to pay $45 million to settle claims from 46 U.S. states alleging Cash App failed to protect users from fraud. The states found that Cash App allowed account creation without a Social Security number or date of birth, had no limits on accounts per person, and lacked a customer support phone number, leading users to fake support lines operated by scammers.
This settlement follows a separate $175 million penalty from the Consumer Financial Protection Bureau over similar issues. Cash App has been under increasing regulatory scrutiny as millions of Americans use fintech apps as their primary banking services. Block denied wrongdoing in the settlement but agreed to improve fraud prevention and customer service.
The growing reliance on fintech apps for banking services has outpaced regulatory frameworks, making consumer protection a major policy issue. This settlement signals that state attorneys general are aggressively pursuing fintech companies over inadequate security measures.