If you’ve been using Cash App and experienced unauthorized account access or fraudulent transactions between August 23, 2018, and August 20, 2024, you might be eligible for a payout of up to $2,500 from a $15 million settlement.
This settlement addresses allegations of inadequate security measures by Cash App and its parent company, Block, following multiple data breaches.
Let’s explore the background of this settlement, the allegations involved, and how you can claim your share of the compensation.
Background of the Class Action Lawsuit
The class action lawsuit stems from security incidents dating back to 2022 and 2023. Plaintiffs Michelle Salinas, Raymel Washington, and Amanda Gordon accused Cash App and Block of negligence after a former employee allegedly accessed sensitive customer data in 2022.
Further security issues arose in 2023 when unauthorized users gained access to accounts using recycled phone numbers.
The plaintiffs argued that Cash App failed to protect user data adequately, leading to unauthorized transactions and poor handling of customer complaints. Though Cash App denies any wrongdoing, it has agreed to this settlement to avoid prolonged litigation.
Key Allegations
The lawsuit focused on two key incidents:
- 2022 Data Breach: A former Cash App employee improperly accessed sensitive user information.
- 2023 Unauthorized Access: Accounts were breached through the use of recycled phone numbers, leading to fraudulent activity.
The plaintiffs claimed these breaches resulted from Cash App’s failure to implement proper security protocols and adequately address the aftermath of unauthorized transactions. As a result, users experienced financial losses and inconvenience, prompting the need for legal action.
Who Is Eligible for Compensation?
You may be eligible to claim compensation if:
- You are a current or former Cash App customer or a user of its investing platform, Cash App Investing.
- Your personal information or Cash App account was accessed without your authorization.
- You experienced unauthorized transactions or fraudulent withdrawals from your Cash App account or any linked financial account.
- You had trouble resolving errors or unauthorized transactions on your account between August 23, 2018, and August 20, 2024.
Settlement Benefits: What You Can Claim
The $15 million settlement fund is allocated to cover legal costs, administration fees, and direct compensation to affected customers. The compensation is split into several categories, providing financial relief for different types of losses.
1. Out-of-Pocket Losses
Claimants can receive up to $2,500 for out-of-pocket expenses directly linked to the security breaches. These expenses may include:
| Expense Type | Example Costs |
|---|---|
| Credit Monitoring | Costs of monitoring your credit |
| Identity Theft Insurance | Coverage purchased to protect identity |
| Replacement of Payment Cards | Fees for replacing debit or credit cards |
| Overdraft Charges | Overdraft fees related to fraudulent activity |
2. Lost Time
Claimants are eligible for reimbursement for time spent dealing with security incidents, such as resolving fraudulent transactions or handling customer service. Compensation is set at $25 per hour, with a maximum of three hours.
3. Transaction Losses
If you experienced monetary losses due to unauthorized account activities, you can claim reimbursement for those amounts, provided they haven’t been compensated by Cash App, your bank, or an insurance company.
Pro-Rata Distribution
If valid claims exceed the $15 million settlement fund, the compensation per claimant will be reduced proportionally. Conversely, if money remains after all claims are paid, it will either be distributed among claimants or donated to charity.
How to Submit a Claim
The deadline to submit your claim is November 18, 2024. You can file your claim either online or by mail, and it’s essential to include proper documentation to support your claim.
Steps to File Your Claim:
- Confirm Eligibility: Ensure you meet the eligibility criteria based on the security breaches and timeframe.
- Gather Documentation: Collect receipts, bank statements, police reports, or any documents showing your losses or time spent resolving issues.
- Submit Your Claim: Complete the claim form online or by mail, attaching all necessary documentation, before the deadline.
For those submitting claims by mail, ensure your contact details are up to date so you can receive any compensation for which you’re eligible.
Future Outlook and Settlement Impact
This settlement serves as a resolution to the allegations surrounding Cash App’s security issues, providing financial compensation to affected users and, ideally, incentivizing improved security measures within the company.
It also highlights the importance of cybersecurity in digital finance, ensuring that companies like Cash App prioritize protecting customer data.
For eligible Cash App users, this settlement offers a chance to recover losses incurred due to unauthorized account activity while holding companies accountable for failing to safeguard sensitive information.
FAQs
Who is eligible for the Cash App settlement?
Anyone who experienced unauthorized access or fraudulent transactions between August 23, 2018, and August 20, 2024.
How much compensation can I receive?
You may receive up to $2,500 for out-of-pocket losses and other compensation for lost time and transaction losses.
What is the deadline to submit a claim?
The deadline is November 18, 2024.
How do I file a claim?
You can file a claim online or by mail with the necessary documentation.
What type of losses are covered?
Out-of-pocket expenses, lost time, and transaction losses related to security breaches.
