Arkansas will receive $453,754 as part of a $45 million multistate settlement with Block, Inc., the parent company of the popular mobile payment platform Cash App, Attorney General Tim Griffin announced Thursday.
The settlement resolves allegations brought by Arkansas and 45 other state attorneys general accusing Block of misleading consumers about the safety of Cash App, failing to adequately protect users from fraud, and not providing legally required fraud investigations and customer support.
Griffin: Consumer Protection Remains a Priority
Attorney General Griffin said protecting Arkansans from financial fraud remains a top priority for his office.
“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.”
Griffin added:
“Arkansas’s portion of the settlement will be $453,754. Protecting consumers is a key priority for this office, and I am pleased with the outcome of this case.”
Allegations Against Cash App
According to the settlement, investigators alleged that Block promoted Cash App as a safe place to store money, creating the impression that it offered protections similar to those provided by traditional banks.
However, attorneys general alleged the company failed to strengthen fraud protections even as scams and fraudulent activity increased across the platform.
Officials said Cash App aggressively encouraged customers to deposit paychecks and government benefits directly into the app, particularly targeting consumers without traditional bank accounts.
Those users often relied on Cash App as their primary financial account, making them especially vulnerable to fraud.
Fraud Protection Concerns
The investigation identified several practices that allegedly contributed to increased fraud, including:
Minimal identity verification during account creation, allowing scammers to easily create fraudulent accounts.
No live customer phone support for several years, forcing customers to seek help online where many unknowingly contacted fake customer service numbers operated by scammers.
Continued promotion of the popular “Cash App Fridays” social media campaign, which encouraged users to publicly share their Cash App usernames. According to investigators, scammers frequently used the promotion to trick users into revealing login credentials.
Officials said Block was aware of many of these scams but continued several of the practices for years.
Changes Required Under Settlement
As part of the agreement, Block has agreed to implement stronger consumer protections, including:
Maintaining customer service capable of resolving fraud complaints and account lockouts.
Providing live customer support 24 hours a day, including human phone support for at least 13.5 hours daily and live chat for at least 18 hours daily.
Ending false or misleading advertising about Cash App’s security.
Eliminating marketing practices known to increase fraud.
Providing education to users about common scams.
Meeting legal requirements to investigate fraud claims and reimburse customers for unauthorized transactions.
Additional Consumer Compensation
The multistate settlement also reinforces Block’s earlier agreement with the Consumer Financial Protection Bureau (CFPB) to distribute between $75 million and $120 million in compensation to eligible consumers nationwide.
Officials say additional information regarding consumer compensation will be available through the CFPB settlement process.
Protecting Arkansas Consumers
Attorney General Griffin said the agreement sends a clear message that companies offering financial services must protect consumers and provide the support promised to customers.
The settlement is one of the largest multistate consumer protection actions involving a mobile payment platform.
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