Cash App has to pay. Yes, the popular payment app has had to give in after months of litigation. In January 2025 a court approved a multimillion-dollar settlement that will allow thousands of users in the United States to receive up to 2,500 dollars in compensation after putting Block, Inc. (the parent company of the app) in the spotlight. Compensation for what?
That said, wait because the money will not arrive immediately, first they have to review absolutely all the claims (and there are not few). But it is an example that you cannot play with the security or the privacy of users, which big companies still do not seem to have understood!
How the problem started
You must have noticed too, Cash App has grown at an incredible pace these last 10 years, from not knowing what app we were talking about to absolutely all your acquaintances using it. Indeed, it caused cash to plummet because it is very convenient to send and receive money through an app. It arrives in seconds and you do not have to be opening your wallet to store loose change.
But all power comes with great responsibility and that success exposed its weak points: it is not a secure app (or it was not at the time of this lawsuit).
The class action lawsuit pointed out serious problems including unauthorized transfers, accounts blocked without response, and improper access to sensitive data… A combination that left thousands of users unprotected and raised alarms about the platform’s security.
Who can collect
Not all customers are entitled to a piece of this pie, make sure you can receive your part of the compensation:
- Be a resident in the United States.
- Have suffered unauthorized access to the app or to Cash App Investing.
- Have lost money due to unauthorized transfers.
- Be an active user between August 2018 and August 2024.
- Have tried unsuccessfully to resolve an account problem during that period.
The total settlement amount is 15 million dollars. The individual maximum, 2,500 dollars, but be careful because it will only be given to the most serious cases. The more users who meet the requirements, the smaller the final amount per person!
The payment schedule
On January 13, 2025 the court gave final approval to the settlement, and from there began the verification of claims that, if nothing else goes wrong, will begin to arrive at the end of this year.
Those who sent the correct documentation will be able to track the status of their request on the official site cashappsecuritysettlement.com. and those who did not… Bad luck.
A warning for the whole sector
The case of Cash App is not the only one, and more and more of us believe that companies do not properly protect our most sensitive information.
These kinds of companies handle enormous amounts of digital money and user data, which makes them a top target for hackers and scammers…
The ruling against Block, Inc. wants to make it clear that without transparency or responsibility there is no trust, and that it is time for our data to become relevant enough to be protected.
What do I do as a user?
Although most customers have never had problems, it never hurts to be warned. Experts recommend checking every movement in the account, using secure passwords, enabling two-step verification and always being suspicious.
Cash App will have to pay its users for having put them at risk, but… will it be enough for users to trust Cash App again?