Cash App Users Can Get Money Back for Losses and Data Breach

Listen up if you are a recent user of the online payment app Cash App – you could be getting money back because of a massive security breach that may have compromised your data, and any financial losses you suffered.

Cash App has just reached a proposed a $15 million dollar settlement in a lawsuit over the company’s response to security breaches.

Like Paypal, Zelle and Venmo, Cash App allows users to send and receive cash, invest in stocks, buy bitcoin and make payments at certain merchants.

If you’ve used Cash App in the last six years and have dealt with a security breach, you may be eligible to receive more than $2,500.

Here’s what to know, including the deadline to apply for your money back – which is Nov. 18, 2024.

Background of Cash App Settlement

A group of Cash App users allege in a class-action lawsuit that the app and its owner, Block, were negligent and broke obligations to users in their response to several data breaches, failing to implement sufficient security controls.

The lawsuit includes the accusation that Cash App and/or Block did not respond promptly or adequately to to user concerns about fraudulent transactions.

The complaint points to a 2011 incident when a former Cash App employee downloaded reports of some users without permission, and a 2023 incident when an unauthorized user accessed data of some accounts.

According to the complaint, many of the lawsuit members said they lost as much as $40,000 from their accounts.

Block and Cash App deny any liability or wrongdoing, and the settlement is not an admission of guilt.

Who is Eligible for Settlement Payments

You are eligible if your used Cash App between August 23, 2018 and August 20, 2024.

You are eligible if your personal information or accounts were accessed without permission, if there were fraudulent transactions on your account, or if you experienced “a deficiency in the resolution of an error” when you reported a problem. And of course, if you suffered identity theft because of the data breach.

You can receive up to $2,500 – based on whatever money is left in the $15 million settlement fund after legal and other administration fees are paid. Yes, as always, the lawyers get paid before the victims.

Losses include –

overdraft fees and late fees as well as costs associated with credit monitoring or identity theft insurance,
requesting a credit report, canceling a payment card or closing a bank account. Lost time spent responding to security breaches,
unauthorized transactions or Cash App deficiencies in resolving errors may be reimbursed at $25 an hour, up to three hours.
those who lost money through unauthorized transactions can file a claim for reimbursement.

How to Submit a Cash App Settlement Slaim

Cash App customers must submit a claim form by Nov. 18 here with proper documentation.

Claims can be submitted online or by mailed. The final approval hearing for the proposed settlement will be held Dec. 16.

See our Scam Alert article on the dangers of using online payment apps

Is Cash App safe to use?

Cash App says on its website that it “uses cutting-edge encryption and fraud detection technology to make sure your data and money is secure,” and the app has an A-plus Better Business Bureau rating.

However, the Washisngton Post reports that customer reviews for Cash App on the BBB website average 1.11 out of 5 stars.

The Consumer Financial Protection Bureau warns against storing money on payment apps because it is not automatically protected by the federal government, and if the companies fail, your money could be lost entirely.Congress has toyed with whether to treat companies offering mobile payment services more like banks and regularly inspect some of their operations, but nothing has happened..

The American Bankers Association encourages consumers using digital payment services to take precautions such as double-checking information before sending money, using multifactor authentication and setting up notifications about transactions via email or text.

Have you ever been scammed or even frustrated by an online payment app? Let us know.

ecoXplorer Evelyn Kanter is a journalist with 25+ years of experience as a newspaper and magazine writer, radio & TV news producer & reporter, and author of guidebooks and smartphone apps – all focusing on travel, automotive, the environment and your rights as a consumer.