Current and former Cash App users could soon receive compensation from a proposed $15 million class-action settlement involving the popular payment service.
This settlement stems from allegations that Cash App Investing and its parent company, Block Inc., failed to adequately protect user data during recent security breaches.
The lawsuit, filed earlier this year, accused Cash App of neglecting to implement necessary security measures, resulting in unauthorized access to customer information.
The complaint focused on two specific incidents: a 2021 breach (reported in 2022) in which a former employee unlawfully obtained U.S. user reports, and a 2023 breach (reported in 2023) in which an unauthorized user accessed accounts by utilizing associated phone numbers.
While Cash App and Block have denied any wrongdoing, they agreed to pay $15 million to resolve the lawsuit.
Affected customers who submit eligible claims, will receive a portion of this settlement money once legal fees and administrative expenses are deducted. Additionally, Cash App has committed to strengthening its data security as part of the settlement agreement.
If you are a current or former Cash App user affected by these breaches, you may be eligible for a settlement payment.
The official settlement administrator’s website is the place where claims can be filed, and the deadline is November 18. December 16 is the day of the settlement’s final approval hearing.
Eligible users may receive compensation for out-of-pocket losses, lost time, and transaction losses. For out-of-pocket losses, reimbursements can go up to $2,500.
Claims for lost time can provide $25 per hour, up to three hours, while additional relief may be available for transaction losses.
However, if the number of claims exceeds the settlement fund, payments may be reduced proportionally. Those who wish to exclude themselves from the settlement or object must do so by November 1.
To protect your data in the future, create strong passwords, use multifactor authentication, and monitor your accounts for suspicious activity. Additionally, consider setting up free credit freezes or fraud alerts with nationwide credit bureaus to further safeguard your information.
