Arkansas Attorney General Tim Griffin announced that the state will receive part of a $45 million settlement from Block, Inc., which operates CashApp.
LITTLE ROCK, Ark. – Arkansas Attorney General Tim Griffin announced Wednesday that the state will receive part of a $45 million settlement with Block, Inc., the company that operates the popular mobile payment platform Cash App.
The state will receive $453,754 as a result of the settlement, with Griffin saying, “Consumer protection is a key priority for this office, and I am pleased with the outcome of this case.”
Officials said Block, Inc. (Block) told Cash App users that their money was safe, implying that the app operates like a bank with the same security, which is not true.
The company promoted direct deposits of paychecks and government benefits on Cash App, especially for unbanked and unbanked consumers.
Block has grown its user base without guaranteeing it can support those users if problems arise, officials said.
“This settlement resolves the lawsuit that my office, along with 45 other attorneys general, filed against Block, Inc,” Griffin said. “For misleading consumers about the security of Cash App, failing to protect consumers from fraud on the platform, and failing to provide the fraud protections and solutions that the company is required by law to provide.”
Under the agreement, the Bloc agreed to take responsible actions to address these issues, including:
• Maintain customer support that can resolve complaints about fraud, account suspensions, and other issues.
• Offer real-time support 24 hours a day, with a person available by phone at least 13.5 hours a day and live chat at least 18 hours a day.
• Stop making false or misleading statements about the security of Cash App and how it protects users from fraud.
• Stop marketing practices that are known to increase fraud on the platform.
• Directly inform consumers about common scams.
• Fulfill our legal obligations to investigate allegations of fraud and reimburse users for unauthorized transactions.
More detailed information about the settlement can be found here.