Block to pay $45M to settle Cash App fraud probe

Block agreed to pay $45 million to resolve a multistate investigation into Cash App transactions, addressing claims that the payments app failed to protect users from scams and deceptive activity. State officials and the company announced the agreement this week.

Under the settlement, the payment will go to participating states to address consumer losses and support enforcement tied to the probe. The agreement also requires Block to work with regulators on measures intended to reduce fraud, though officials did not publish a full list of technical or operational changes in the initial notice.

The inquiry was led by a coalition of state attorneys general. Investigators examined how Cash App handled reports of fraudulent transactions, transaction flows, account monitoring, the speed and scope of customer support responses, and whether fraudulent accounts remained active.

Block, the parent company of Cash App, issued a brief statement saying it reached the agreement to resolve the probe and that it has invested in fraud-prevention tools. The company highlighted efforts to improve detection systems and expand customer support. Cash App serves tens of millions of customers and processes billions of dollars in payments annually, according to company figures.

Consumer advocates and state officials have raised concerns that peer-to-peer payment services can enable scams because transfers are often instant and difficult to reverse. Common reported scams include impersonation, investment and cryptocurrency fraud, and fake marketplace sales where buyers send money but do not receive goods or services.

The settlement closes the specific multistate inquiry into Cash App transactions. State officials said they will monitor Block’s compliance with the agreement and may pursue additional enforcement if the terms are not met.