Cash App, owned by Block, Inc. (formerly Square, Inc.), has reached a $15 million class-action settlement following two separate data breaches that affected users between 2018 and 2024. While the company denies any wrongdoing, the settlement aims to compensate affected users and strengthen security measures.
This guide covers the background of the breaches, eligibility for compensation, claim filing deadlines, and Cash App’s response to the settlement.
What Led to the Cash App Data Security Settlement?
Cash App faced legal action after two major data breaches raised concerns about customer privacy and account security.
2022 Breach – Insider Access
- A former Cash App Investing employee allegedly accessed sensitive customer account data without authorization.
- Exposed Data: Names, brokerage account numbers, stock trading activity, and portfolio values (Social Security numbers and addresses were reportedly not compromised).
- Security Concerns: The incident revealed weak internal access controls for former employees.
2023 Breach – Unauthorized Third-Party Access
- A hacker exploited recycled phone numbers that were still linked to old Cash App accounts.
- Impact: Users reported unauthorized withdrawals and fraudulent transactions.
- Security Gap: Cash App was criticized for not implementing stronger security measures to prevent account takeovers.
The lawsuit alleged that Cash App and Block were negligent in handling these breaches, prompting the $15 million Cash App Data Security Settlement to compensate affected users.
Summary of the Cash App Data Security Settlement
| Total Settlement Amount | $15 million |
| Maximum Individual Compensation | Up to $2,500 |
| Eligibility Period | Users with active Cash App accounts from August 23, 2018 – August 20, 2024 |
| Types of Breaches | 2022: Insider access by ex-employee 2023: Unauthorized access via recycled phone numbers |
| Required Documentation | Bank statements, receipts, invoices, police reports |
| Claim Deadline | November 18, 2024 |
| Exclusion Deadline | November 1, 2024 |
| Official Claim Submission | Settlement website |
Affected users should review their eligibility and submit claims before the deadline to ensure compensation.
Cash App Data Security Settlement: Key Details
Total Settlement Amount:
- $15 million was allocated for affected users.
Individual Compensation:
- Eligible users can receive up to $2,500 per claim.
- Reimbursement is based on documented financial losses, including:
- Bank fees and charges from fraudulent transactions.
- Credit costs related to identity theft.
- Travel expenses incurred while resolving fraudulent transactions.
- Lost time (up to three hours compensated at $25 per hour).
Who Is Eligible?
To qualify for the Cash App Data Security Settlement, claimants must:
- Have used Cash App at least once between August 23, 2018, and August 20, 2024.
- Have been affected by one or both breaches, resulting in unauthorized access, fraudulent withdrawals, or compromised personal data.
- Provide documentation of financial losses (bank statements, receipts, invoices, credit reports, or police reports).
Users who meet these criteria can submit a claim online before the deadline.
How to File a Claim for the Cash App Data Security Settlement
Step 1: Visit the Official Settlement Website
- Claims must be filed through the designated settlement website.
- Users who received a notice via email or mail can enter their Notice ID and confirmation code to start their claim.
- Those who did not receive a notice but were affected can still file manually.
Step 2: Submit Proof of Losses
- Upload supporting documents such as:
- Bank statements showing fraudulent charges.
- Receipts or invoices for expenses related to fraud resolution.
- Police reports (if applicable).
Step 3: Submit Before the Deadline
- Claim Filing Deadline: November 18, 2024, at 10:59 PM PT.
- Exclusion/Objection Deadline: November 1, 2024 (for those opting out of the settlement to pursue separate legal action).
Legal and Corporate Implications of the Settlement
Cash App and Block’s Response
Despite agreeing to the $15 million Cash App Data Security Settlement, Block and Cash App deny liability for the breaches. They state that the settlement is a practical resolution to avoid prolonged litigation.
Security Enhancements
As part of the settlement agreement, Cash App and Block have committed to improving security protocols, including:
- Stronger internal controls to prevent unauthorized employee access.
- Enhanced security monitoring to detect suspicious activity faster.
- Better protections for accounts linked to recycled phone numbers to prevent unauthorized access.
Impact on the Fintech Industry
The Cash App settlement highlights a growing trend in consumer protection lawsuits targeting fintech and digital payment companies. It reinforces the need for stronger cybersecurity measures and better customer data protection.
Should You File a Claim?
If you experienced fraudulent transactions, unauthorized access, or lost time due to the Cash App data breaches, filing a claim could help recover losses. While Cash App and Block deny liability, this settlement provides a way for affected users to receive compensation.
To check your eligibility and submit a claim, visit the official settlement website before November 18, 2024.
Claire Bennett is a seasoned finance writer with over 8 years of experience, specializing in personal finance and investment strategies. She has contributed to top media outlets like Forbes and Business Insider.