By Daniel Wiessner
BLOCK has agreed to pay $45 million and offer live customer support for its mobile payment service, Cash App, to settle claims by 46 U.S. states that the ?company failed to protect users from fraud, officials said.
State attorneys general ?involved in the investigation said they had found that Block misled users with advertising that falsely implied that Cash App offered protections akin to a bank including cutting-edge fraud detection. Block denied wrongdoing.
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Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.