MONTGOMERY, Ala. – Attorney General Steve Marshall announced on Thursday that Alabama will receive nearly $600,000 in a multistate settlement with the owner of Cash App.
The $45 million settlement joined by 46 states came amid allegations that Block, Inc. – the company behind the Cash App peer-to-peer payment app – misled customers about the app’s safety and did not provide the fraud protection and resolution required by law.
The AG’s statement said that Block misrepresented itself to customers and implied that it operated with the same protections as a bank, which was not the case. It also claimed that Block knew fraud was increasing on its platform but increased marketing instead of fixing the problem.
The statement said that Block had inadequate customer service, which left users with no recourse when fraud occurred.
“For years, Block actively promoted direct deposits of paychecks…
Review your monthly bank statements and credit card bills line-by-line to spot small “tester” transactions of R5 or R10, which fraudsters use to verify if a stolen card is still active.