Block, the parent company of Cash App, has agreed to a $45 million settlement with regulators across nearly all U.S. states over allegations of misleading security claims. The New York Attorney General's office accused Block of falsely marketing Cash App as offering bank-like protections, despite lacking a consistent fraud detection system and an effective customer complaint hotline. Regulators highlighted that Block was aware of rising fraud but failed to alert users, instead increasing marketing efforts targeting unbanked individuals. Additionally, Block was criticized for its "Cash App Friday" promotions, which allegedly exposed users to scams. Block denies any wrongdoing, stating the settlement addresses legacy issues and emphasizing recent investments in consumer protection and compliance.
Cash App Parent Block Settles for $45 Million Over Security Misrepresentation
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