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Cash App owner to pay $45 million to settle allegations of lax security

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Cash App owner to pay $45 million to settle allegations of lax security

Block, Inc., owner of Cash App, has agreed to pay $45 million to settle allegations from state attorneys general that it misrepresented the security protections offered to users. The settlement addresses claims that the company falsely promised Cash App users would receive bank-equivalent security safeguards.

Why it matters: Payment processors and fintech companies need to review their security claims and disclosures to avoid similar enforcement actions; organizations should ensure marketing materials accurately reflect the actual security controls in place.

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