Cash App customers now have the opportunity to claim compensation as part of a $15 million settlement addressing allegations of inadequate security measures. The lawsuit, which resulted from incidents of unauthorized access and account breaches, alleged negligence by Cash App and its parent company, Block (formerly Square). While the companies denied any liability, they agreed to settle to avoid the costs and uncertainty of a prolonged legal battle. Here’s everything you need to know about the settlement, eligibility, and how to file a claim.
Background of the Cash App Settlement
The class action lawsuit stems from security breaches involving Cash App Investing and Cash App accounts. In 2022, a former employee of Cash App Investing allegedly accessed sensitive customer data without authorization. Additional incidents occurred in 2023, including account breaches linked to recycled phone numbers. The plaintiffs argued that these lapses were caused by inadequate security protocols and mishandling of customer complaints, leading to financial and personal losses for affected users.
Although Cash App and Block denied wrongdoing, they agreed to the $15 million settlement to compensate affected customers and avoid extended litigation.
Who Qualifies for Compensation?
You may be eligible for compensation if you:
- Are a current or former customer of Cash App or Cash App Investing, or their affiliates.
- Experienced unauthorized account access or fraudulent transactions between August 23, 2018, and August 20, 2024.
- Faced deficiencies in how your complaints about account breaches were resolved.
These conditions apply to accounts accessed without authorization, unauthorized withdrawals or transfers, and unresolved transaction errors.
Settlement Benefits and Compensation Categories
The $15 million settlement fund is designed to cover various damages incurred by affected users. Eligible customers can file claims under the following categories:
1. Out-of-Pocket Losses
Class members may receive up to $2,500 for documented out-of-pocket expenses related to the security breaches. Examples of reimbursable costs include:
- Credit monitoring services.
- Identity theft protection or insurance.
- Credit freeze or account recovery fees.
- Replacement costs for payment cards.
- Overdraft fees not refunded by financial institutions.
2. Lost Time
Claimants may be reimbursed for time spent resolving issues caused by the security breaches, up to three hours at a rate of $25 per hour.
3. Transaction Losses
Customers who experienced monetary losses from unauthorized account activity may claim reimbursement for the value of these losses if they were not previously compensated by Cash App, their financial institution, or insurers.
Pro-Rata Distribution
If the number of valid claims exceeds the available funds, payouts will be reduced proportionally. Conversely, if money remains after all claims are satisfied, the surplus will be distributed among claimants or donated to a charitable organization.
How to Submit a Claim
Eligible users must submit a claim form by November 18, 2024, to receive compensation. The process is straightforward and includes both online and mail submission options.
Steps to File a Claim
- Confirm Eligibility
Verify that you meet the criteria outlined in the settlement agreement. - Gather Documentation
Collect evidence supporting your claim, such as financial statements, receipts, police reports, or other records that demonstrate your losses. - Submit the Claim Form
Complete the claim form accurately and attach the required documentation. Submit it online or by mail before the deadline. - Follow Up
Keep your contact information up to date with the settlement administrator to ensure you receive any compensation owed.
Accessing Assistance
For additional information or help with the claims process, contact the Cash App Security Settlement Administrator. They can provide guidance on eligibility, claim submission, and required documentation.
Key Dates and Deadlines
| Action | Deadline |
|---|---|
| Incident Eligibility | Between August 23, 2018, and August 20, 2024 |
| Claim Submission | November 18, 2024 |
What This Settlement Means for Customers
This settlement not only offers affected Cash App users an opportunity for compensation but also highlights the importance of robust security practices in the financial technology sector. For users, it’s a chance to recover financial losses and hold companies accountable for safeguarding personal and financial data.
The legal action underscores a broader trend in digital finance: customers expect and deserve transparency, security, and responsive service. Cash App and Block have committed to implementing stronger security measures as part of the settlement, which may help rebuild trust among users.
FAQs
How do I know if I qualify for compensation?
You are eligible if you had an account with Cash App or Cash App Investing between August 23, 2018, and August 20, 2024, and experienced unauthorized account access, fraudulent transactions, or unresolved complaints.
What compensation can I receive?
Eligible customers can claim up to $2,500 for out-of-pocket expenses, reimbursement for lost time, and financial losses from unauthorized transactions.
Do I need to file a claim to receive compensation?
Yes, affected users must submit a claim form and provide supporting documentation by the November 18, 2024, deadline.
How will payouts be determined?
Payments will be calculated based on the type of claim and supporting evidence. If claims exceed the available funds, payouts will be reduced proportionally.
Can I file a claim online?
Yes, claims can be submitted online through the settlement administrator’s website.