Cash App, a popular mobile payment platform, is resolving a $15 million class-action lawsuit related to security failures and unauthorized account access. The settlement stems from two major incidents that exposed sensitive user data and left many customers vulnerable to fraud.
What Happened?
The lawsuit, Salinas, et al. v. Block, Inc. and Cash App Investing, LLC, was filed after users experienced financial losses and security breaches, including:
- April 2022 Data Breach: A former employee accessed personal and financial data without permission.
- October 2023 Incident: Recycled phone numbers linked to Cash App accounts were exploited by unauthorized users.
Customers accused Cash App of not implementing sufficient security measures and failing to respond effectively to complaints about fraudulent activity.
Who Can Claim Compensation?
If you were a Cash App user between August 23, 2018, and August 20, 2024, and suffered financial loss from unauthorized access, you might qualify for compensation. Eligible users can receive:
- Up to $2,500 for documented losses such as fraudulent transactions.
- $25 per hour for up to three hours (totaling $75) for time spent resolving issues.
Key Deadlines and Next Steps
The deadline to submit claims was November 18, 2024, and a Final Approval Hearing is scheduled for January 13, 2025. If approved, payments to eligible users are expected to roll out by late 2025 or early 2026.
Why This Matters
This case highlights the importance of security for digital payment platforms like Cash App. With millions relying on these apps, robust measures are essential to protect users from fraud and maintain trust.
For updates, affected users are encouraged to visit the official settlement website or call the Settlement Administrator at 1-866-615-9740.
