AG Griffin announces $45 million settlement with Block, Inc.

Arkansas Attorney General Tim Griffin announced a $45 million multi-state settlement with Block, Inc., the company that operates the popular mobile payment platform Cash App.

Arkansas’ portion of the settlement will be $453,754.

Block told Cash App users their money was safe, although they knew it wasn’t. Instead of warning users or strengthening protections, it doubled down on marketing, the AG said.

The lawsuit claimed that Block’s policies made fraud easier.

“This settlement resolves a lawsuit that my office, along with 45 other attorneys general, brought against Block, Inc. for misleading consumers about the safety of Cash App, for failing to protect consumers from fraud on the platform, and for not providing fraud protection and resolution that was required by law and that the company had committed to providing,” said Griffin. “Protecting consumers is a key priority for this office, and I am pleased with the outcome of this case.”

Under the settlement, Block has agreed to implement and maintain responsible practices to resolve these issues, including to:

• Maintain customer support that can resolve fraud complaints, account lockouts, and other problems.
• Offer live support 24 hours a day, with a human available by phone at least 13.5 hours a day and by live chat at least 18 hours a day.
• Stop making false or misleading claims about Cash App’s safety and how it protects users from fraud.
• Discontinue marketing practices known to increase fraud on the platform.
• Directly educate consumers about common types of fraud.
• Fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.

The multi-state settlement also reaffirms Block’s commitment to distribute between $75 million and $120 million to compensate consumers nationwide as part of a settlement with the Consumer Financial Protection Bureau (CFPB).