Indiana to get $1.7M as part of $45M settlement with Cash App

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Indiana is set to receive more than $1.7 million after securing a settlement judgment against Block Inc., the company behind the popular peer-to-peer payment app Cash App, for allegedly misleading consumers about its fraud protections.

The $45 million total settlement resolves allegations from 46 states that Block, a Delaware corporation with its principal office in Oakland, California, deceived its users about the safety of Cash App and failed to provide promised fraud protections – which were also required by law.

The July 6 settlement order does not require Block to accept any wrongdoing.

“Block is entering into this Judgment solely for the purpose of concluding this matter, and nothing contained herein may be taken or construed to be an admission or concession of any alleged violation of law, rule, or regulation, or of any other matter of fact or law, or of any liability or wrongdoing,” the judgment stated.

Still, Block has agreed to several injunctive requirements, including maintaining customer support to resolve fraud complaints and account lockouts; offering live support 24 hours a day, including making a human representative available by phone; discontinuing marketing practices that are known to increase fraud on the platform and to educate its consumers directly about common types of fraud.

A Block spokesperson told The Indiana Lawyer in a written statement Monday that the agreement resolves a “previously disclosed legacy matter that primarily relates to historical aspects of our business.”

“Cash App has made significant investments in consumer protection, customer service, and compliance in order to safeguard and serve the tens of millions of Americans who rely on Cash App to meet their banking and credit needs,” the Block spokesperson said. “We share the commitment of the attorneys general to addressing industry challenges and continue to invest in operations and technology to promote a safe and healthy financial ecosystem.”

State attorneys general from Oregon and Texas led the investigation. Indiana served on the executive committee that negotiated the settlement, an office spokesperson for Attorney General Todd Rokita said in a written statement on Monday.

According to the lawsuit, in 2013, Block launched Square Cash, which is now known as Cash App.

Through an investigation, state attorneys general say they discovered that Block told Cash App users their money was safe, which they allege implies that the app worked like a bank and had the same protections, which was not true.

The New York Attorney General’s Office stated that Block claimed in its terms of service that it had “cutting edge … fraud detection technology,” when instead the company lacked a consistent fraud detection system. Block also allegedly failed to use a functioning fraud communication system for users to report scams.

The attorneys general say Block’s policies not only failed to stop fraud but actually made it easier.

Block’s sign-up process was designed to be “fast and frictionless,” with little identity verification, making it easy for fraudsters to create accounts, the attorneys general said in press releases. And for years, Cash App had no phone support, meaning users who needed assistance could only reach out for help through the Cash App application or through social media. This resulted in some users calling fake phone numbers, thinking they were legitimate Cash App numbers, which instead put them in contact with scammers who would drain their financial accounts.

According to the attorneys general, Block also ran a promotion on social media called “Cash App Fridays,” which encouraged users to publicly share their “$cashtag” – a unique app-related identifier – for a chance to win weekly prizes. However, fraudsters would contact those users and trick them into believing they had won, only to steal their login information.

The attorneys general say Block knew about the scams for years but kept running the promotion anyway.

“Block knew fraud on its platform was rising sharply – and instead of warning users or strengthening protections, it doubled down on marketing,” a spokesperson for Attorney General Rokita said. “Our office will continue to protect Hoosiers and hold bad actors accountable.”

The July judgment comes more than a year after the Consumer Financial Protection Bureau issued an order against Block for similar violations Cash App made between July 2019 and January 2025.

The bureau ordered Block to change its practices to comply with the law and to pay between $75 million and $120 million to redress customers. The order also required Block to pay $55 million in civil penalties.