In a recent development, Cash App customers had the opportunity to file claims for compensation from a $15 million settlement concerning security allegations. The lawsuit, which accused Cash App and its parent company Block of negligence and failing to protect user data, was prompted by reports of unauthorized access and fraudulent transactions. Although Cash App and Block denied any wrongdoing, they agreed to settle to avoid the costs and uncertainties of litigation.
Eligible customers who experienced unauthorized access, fraudulent transactions, or were dissatisfied with how their complaints were handled between August 23, 2018, and August 20, 2024, were entitled to claim up to $2,500 for out-of-pocket losses and additional compensation for lost time and transaction losses. The deadline for submitting claims was November 18, 2024.
Overview of the Cash App Lawsuit
The class action lawsuit highlighted several incidents related to Cash App’s security lapses:
- In 2022, a breach occurred when a former employee of Cash App Investing accessed sensitive customer data without permission.
- In 2023, additional security issues surfaced when unauthorized users accessed Cash App accounts by using recycled phone numbers.
The plaintiffs argued that these incidents stemmed from Cash App’s failure to maintain proper security protocols and adequately respond to customer complaints. As a result, many users suffered financial losses and inconvenience.
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Who Is Eligible for Compensation?
You are eligible for settlement benefits if you:
- Are a current or former customer of Cash App and/or Cash App Investing, its affiliates, or subsidiaries.
- Had your Cash App account or personal information accessed or obtained without authorization.
- Experienced unauthorized transactions or fraudulent withdrawals, or faced issues with resolving errors between August 23, 2018, and August 20, 2024.
Settlement Benefits Breakdown
The settlement provides various forms of compensation for those affected by the security incidents. These include:
Monetary Compensation
A portion of the $15 million settlement fund will cover the following:
- Attorneys’ fees and legal costs.
- Service payments to class representatives.
- Administrative costs.
- Direct compensation to eligible class members who submit valid claims.
Categories of Compensation
- Out-of-Pocket Losses: Eligible claimants can receive up to $2,500 for expenses related to the security breaches, including credit monitoring, identity theft protection, card replacements, and related fees such as overdraft charges.
- Lost Time: Claimants can be reimbursed for up to three hours of lost time spent resolving the issues from the security breaches, with a payment of $25 per hour.
- Transaction Losses: Eligible claimants can receive compensation for documented financial losses directly linked to unauthorized account activities, provided those losses have not already been reimbursed by Cash App or other financial institutions.
Pro-Rata Distribution
If the total amount of claims exceeds the available funds, payments to each claimant will be reduced proportionally. If the settlement fund exceeds the total claims, any remaining funds will either be distributed among claimants or donated to a charity.
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Cash App Settlement Claim Submission: Deadline Passed
To receive compensation, eligible class members needed to submit a claim form by November 18, 2024. Claims could be submitted online or by mail, with supporting documentation such as receipts, police reports, or correspondence to verify the losses.
Cash App Settlement Payment Date: What’s Next?
After submitting a claim, claimants can expect to receive payment based on the final distribution plan. It is important to update contact information with the Cash App Security Settlement Administrator to ensure that any payments are received. For assistance or more details, claimants can contact the administrator at 1-866-615-9740.
This settlement represents a step toward addressing the security concerns raised by Cash App users, offering a path for affected individuals to receive compensation. It also serves as a reminder of the importance of strong security protocols and responsive customer service in the digital finance sector.
