Block has reached a $45 million settlement with 46 U.S. states over allegations that its Cash App failed to adequately protect users from fraud. The states claimed that Block misled users by falsely advertising bank-like protections, including advanced fraud detection.
The settlement stems from an investigation that found Cash App allowed users to create accounts without a Social Security number or date of birth, and didn't place limits on the number of accounts a person could open, making it easier for scammers to exploit the platform.
Under the new settlement, Block will improve Cash App's fraud prevention measures and customer service, including providing live customer support for users of the mobile payments platform.
