Cash App, operated by Block, Inc., a digital wallet service for American consumers, has recently come under fire for alleged data breaches and security shortcomings. The corporation experienced many data breaches, and many of its clients may be eligible for payouts—some potentially exceeding $2,500.
The first data breach we are aware of occurred in 2021, when a former employee of Cash App Investing (the company’s investment branch) obtained confidential reports about specific US consumers without permission, jeopardizing their information. The next incident happened in 2023 when certain Cash App accounts were accessed using linked, recycled phone numbers.
In their action against the corporation, the plaintiffs claim that the breaches were not unintentional mistakes on the part of the company. They argue that Block, Inc. and Cash App did not implement appropriate measures to prevent illegal access and that they mismanaged complaints from affected clients. As a consequence of the evidence gathered, Cash App has agreed to settle these claims, and some users may benefit.
The Cash App Settlement
The class action lawsuit was settled for $15 million, with the business admitting no fault. Those who are eligible, i.e., everyone who held a Cash App account or a Cash App Investing account between August 23, 2018, and August 20, 2024, will need to determine how much of the settlement they can get.
To be eligible for a piece of the pie, your account must have been accessed without your permission, you must have experienced fraudulent withdrawals or transfers, or Cash App must have mishandled an issue in your account. If any of these circumstances apply to your case, you are already entitled; however, if you have experienced any other issues with the app, you may need to file a new lawsuit to be rewarded.
Nonetheless, if you believe your complaint against the company is eligible for a portion of the settlement, you must file your claim by 10:59:59 p.m. PT on November 18, 2024. Claims can be submitted online or by mail; however, if you choose to mail your documentation, make sure it is postmarked before the deadline, otherwise, it will not be accepted. Write on the envelope: “Cash App Settlement, Attn: Claim Form Submissions, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103.”
Even if your proof is accepted and you can claim a portion of the lawsuit funds, not all impacted parties will be able to claim the same amount, and the settlement includes specific parameters that will control who receives how much.
Eligible consumers are eligible for up to $2,500 in out-of-pocket expenses, which could include charges associated with credit monitoring or other security measures implemented following the attack. Cash App will also reimburse lost time for anyone who can demonstrate that they spent substantial time dealing with the aftermath of these accidents.
Those who can provide documentation will be entitled to $25 per hour, up to three hours. Additionally, if you lost money in illicit transactions, you can ask for reimbursement, but you must have paperwork to back up your claim.
The approval process will not be immediate, but it will not take long. Claims filed will be approved by December 16, 2024, at the latest, because a final hearing is set for that date. If the court finds no concerns with the claims or the settlement as a whole, payments should begin shortly after that date. Though particular compensation dates have not been finalized, there’s a strong likelihood you’ll receive your settlement money early next year.
In the interim, current Cash App customers should double-check their account security. Make careful to use strong, unique passwords and enable two-factor authentication to lessen the likelihood of future issues.