New Jersey joins $45 million settlement with Cash App parent company over alleged consumer protection failures
TRENTON, N.J. — New Jersey has joined a bipartisan, multistate $45 million settlement with Block Inc., the parent company of Cash App, over allegations the company misled consumers about the safety of its digital payment platform and failed to adequately protect users from fraud.
Attorney General Jennifer Davenport and the New Jersey Division of Consumer Affairs announced the settlement Wednesday. The agreement, joined by attorneys general from 46 states, resolves allegations that Block failed to provide promised fraud protections and did not adequately respond to fraud complaints involving Cash App users.
“When New Jerseyans trusted Cash App with their hard-earned money, Cash App exposed them to scammers and put their savings at risk. Tech billionaires shouldn’t be able to turn a quick profit by misleading hardworking New Jerseyans and failing to protect them from fraudsters and scammers,” said Attorney General Davenport. “Our office will continue to protect your hard-earned money and hold tech companies accountable when they expose you to fraud and scams on their platforms.”
Under the settlement, New Jersey will receive $892,753.12. The agreement also reaffirms Block’s commitment to distribute between $75 million and $120 million in consumer compensation nationwide through a separate settlement with the Consumer Financial Protection Bureau.
According to the attorneys general, Block marketed Cash App as a safe place to store money, creating the impression that it offered protections similar to those provided by traditional banks. Investigators alleged the company knew fraud on the platform was increasing but failed to adequately warn users or strengthen safeguards.
The investigation also found that Block encouraged users to deposit paychecks and government benefits into Cash App, targeting many consumers who relied on the service as their primary financial account.
Officials alleged the company’s account creation process required minimal identity verification, making it easier for fraudsters to establish fraudulent accounts. For years, Cash App also lacked customer phone support, leading many users to unknowingly contact fake customer service numbers operated by scammers. Authorities further alleged that the company’s “Cash App Fridays” social media promotion exposed users to fraud by encouraging them to publicly share their Cash App usernames.
Investigators said users who experienced suspicious account locks were sometimes unable to access their money for weeks, while victims of unauthorized transactions often did not receive timely investigations or refunds required by law.
“This agreement outlines important steps that Block must take to prevent financial app scams from taking place,” said DCA Acting Director Jeremy E. Hollander. “These actions are as equally important as any funds New Jersey and its residents receive.”
As part of the settlement, Block agreed to maintain customer support for fraud complaints and account lockouts, provide live customer service by phone and chat for extended daily hours, stop making misleading claims about Cash App’s fraud protections, end marketing practices known to increase fraud risk, educate consumers about common scams and comply with legal requirements to investigate fraud claims and reimburse users for unauthorized transactions.
“We’ve reached an agreement that resolves a previously disclosed legacy matter that primarily relates to historical aspects of our business. Cash App has made significant investments in consumer protection, customer service, and compliance in order to safeguard and serve the tens of millions of Americans who rely on Cash App to meet their banking and credit needs. We share the commitment of the attorneys general to addressing industry challenges and continue to invest in operations and technology to promote a safe and healthy financial ecosystem,” a company spokesperson said.
The investigation was led by the attorneys general of Oregon and Texas, with New Jersey joining 43 other states in the settlement.
