There is a block agreed to pay 45 million dollars Resolving claims by 46 US states that peer-to-peer payment app Cash App failed to adequately protect users from fraud.
State attorneys general said they found that Block defrauded users by falsely advertising that the Cash App provided bank-like protections, including advanced fraud detection. Block denied wrongdoing.
According to the states, Cash App allowed users to create accounts without a Social Security number or date of birth and did not limit the number of accounts a person could open, making it easier for fraudsters to use the platform. The states also alleged that many users whose accounts were closed because Cash App did not provide an official customer support phone number called fake customer service numbers operated by fraudsters.
Many Americans rely on fintech apps like banking services, which has led to increased scrutiny. The block settlement is the latest chapter in regulators’ scrutiny of Cash App’s business practices. It follows the previous action Consumer Financial Protection Bureauwhich is Block, similarly charged failure to investigate claims of fraud or provide adequate customer service resulted in $175 million in fines and other damages against consumers.
Under the new settlement, Block Cash will improve App’s fraud prevention measures and customer service, including live customer support for users of the mobile payment platform.
The town reported the news first Reuters. Block did not immediately respond to TechCrunch’s request for comment.
