Attorney General Ken Paxton Secures $45 Million Settlement with Cash App for Victims Exposed to Fraud and Deceptive Safety Claims
Attorney General Ken Paxton secured a $45 million settlement with Cash App to compensate victims of fraud and deceptive safety claims.Summary
Attorney General Ken Paxton, co-leading a multistate investigation involving 45 other states, has secured a $45 million settlement with Block, Inc. (Cash App). The settlement addresses allegations that Cash App misled consumers by marketing its platform as a safe, bank-like alternative while failing to provide adequate fraud protection and resolution. The investigation revealed that Cash App's lax verification standards, lack of phone support, and deceptive promotions left users vulnerable to scammers, often leaving victims unable to recover stolen funds due to delayed investigations and unwarranted account lockouts.
Under the terms of the settlement, Cash App is required to maintain 24-hour customer support, cease misleading safety claims, and discontinue marketing practices that increase fraud risk. The company must also fulfill its legal obligation to investigate and reimburse users for certain unauthorized transactions. Texas residents are set to receive nearly $5 million of the total settlement amount. Attorney General Paxton emphasized that the settlement ensures Texans receive the protection they were promised and sends a message that exploiting consumers is a liability.
(Source：The Post Newspaper)