Block to pay $45 million to settle cash app fraud probe

Block, Inc., the financial technology company behind the Cash App payment service, has agreed to pay $45 million to settle a multistate investigation into allegations that it misled users about the app's security and failed to protect them from widespread fraud. The settlement, announced on July 8, 2026, by a bipartisan coalition of 46 state attorneys general, resolves claims that the company promoted Cash App as a safe banking alternative while neglecting basic consumer safeguards.

State investigators found that Block's marketing assured its more than 56 million users that their money was as secure as in a traditional bank, even as fraud on the platform increased. The company was accused of aggressively targeting unbanked and underbanked individuals, encouraging them to set up direct deposits for paychecks and government benefits. However, the sign-up process featured minimal identity verification, not requiring a Social Security number or date of birth and placing no limits on how many accounts one person could open. Officials said this allowed scammers to easily operate networks of fraudulent accounts.

A critical failure, according to the states, was the absence of official...