Block Settles Fraud Claims for $45 Million

Block has agreed to a $45 million settlement with 46 states to resolve claims that the company misled users about fraud protections. Attorneys general across the country alleged that the firm was aware of rising scams on Cash App but continued aggressive marketing while failing to implement basic account safeguards. Many users reported frozen accounts and extreme difficulty recovering stolen funds.

Under the terms of the agreement, Block must overhaul its customer support operations. The company is now required to provide live phone assistance for at least 13.5 hours per day and chat support for 18 hours daily. Furthermore, the firm must update its security protocols to warn users about common scams and improve the investigation process for unauthorized transactions.

This settlement works alongside a separate agreement with the Consumer Financial Protection Bureau. That deal aims to return between $75 million and $120 million to affected consumers. For crypto and fintech users, this serves as a reminder to prioritize security features and remain vigilant when using digital payment platforms for transfers.