Cash App and Block Inc. face class action lawsuit over data breaches and negligence

Cash App and its parent company Block Inc. are currently facing the repercussions of a $15 million class-action settlement over allegations of negligence and breaches that occurred between 2018 and 2024. The lawsuit accuses Cash App and Block Inc. of mishandling sensitive customer data, leading to unauthorized access and fraudulent transactions.

One incident involved a former Cash App Investing employee accessing account data without permission in 2022. Another event in 2023 saw an unauthorized user accessing accounts using recycled phone numbers linked to them. These breaches prompted concerns about security practices within the companies, resulting in the class-action suit.

Affected users who have experienced unauthorized access, fraudulent withdrawals, or deficient error resolution from August 23, 2018, through August 20, 2024, are eligible to file a claim for compensation. Claims need to be submitted by November 18, 2024, either online or via mail to the designated address provided on the settlement site.

Individuals filing claims could receive up to $2,500 for out-of-pocket losses related to credit monitoring costs and documented transaction losses. Those who have incurred expenses such as requesting credit reports, replacing payment cards, or spending time resolving issues may qualify for reimbursement under the terms of the settlement.

The final approval hearing is set for December 16, 2024, after which payments will be distributed to eligible claimants. Cash App has emphasized the importance of taking action before the deadline to secure potential compensation for affected customers. It's vital for individuals who meet the criteria to submit their claims promptly to be considered for restitution.

As the settlement deadline approaches, users are urged to review their eligibility and gather any necessary documentation to support their claims. This case highlights the significance of safeguarding personal financial information and holding companies accountable for maintaining robust security measures to protect consumers from unauthorized activities and breaches.