The popular mobile payment platform owned by Block Inc. has agreed to pay approximately $3,000 to all eligible Cash App users. As it stands, Cash App claimants may very well see hefty payments being deposited into their bank accounts as part of the $15 million legal settlement resulting from their massive data breaches. While the company has denied all accusations, the company has agreed to the settlement agreement, which signifies a monumental moment for users who had to deal with unauthorized transactions or financial losses. Understanding the qualifying criteria is of utmost importance, but it is equally important to note when payments are expected to land in the bank accounts of eligible citizens.
The reason behind the settlement: Failure to secure data
According to the class action lawsuit entitled Salinas, et al. v. Block, Inc. and Cash App Investing, LLC, there were two data security breaches that resulted in user data being exposed. The main incident happened in April 2022 after a former employee of the company gained access to approximately 8,2 billion users’ data. This data breach of April 2022 resulted in 8,2 million users getting notified of the breach.
According to the legal complaint, Cash App and the parent company, Block Inc., were accused of being negligent as well as for their breach due to their failure to carry out their duty and protect their users. Despite this incident of misrepresentation by the company, a second data breach happened in October 2023, where unauthorized access to users’ personal information resulted in fraudulent transfers and withdrawals. Further accusations from customers suggested that Cash App was unable to resolve complaints during the error resolution process.
Block and Cash App denied liability and, as such, agreed to a $15 million settlement to resolve the claims. The settlement had been officially approved by the court on January 13, 2024.
Who will receive payments in the Cash App settlement?
Affected users who were able to submit a valid claim by November 18, 2024, will be eligible to receive compensation if they experienced unauthorized access to their accounts and have documented losses between the period of August 23, 2018, to August 20, 2024.
Claimants will be liable to prove that:
- They incurred out-of-pocket financial losses due to the incident.
- Their accounts had been accessed without permission.
- That they were users of Cash App or Cash App Investing.
- They had experienced fraudulent transfers, transactions, and withdrawals as a result.
All claimants deemed eligible can receive up to $2,500 if they can produce documentation showing financial harm. With the compensation amount, a reimbursement of up to three hours of lost time is further compensated at $25 per hour. This results in about $75 for the total settlement.
Transaction losses and fees are also covered by this settlement due to failed resolution efforts from the company and unauthorized access to the personal information of the users. Citizens who have claimed are those who checked out the instructions to qualify.
When is the class action payment scheduled to arrive?
No payment date has been confirmed for the Cash App Security Settlement; however, it is believed that all payments will be distributed before the end of 2025. The payment process is ongoing, and all claimants will be notified when payments are being distributed.
Payouts will be made according to the payment method selected when submitting a valid claim form and will reach claimants via check or direct deposit. Claimants who qualified but did not receive a payment notification should check their email or contact the respective settlement administrator.
Citizens who have been affected by this particular data breach should watch out for a deposit that will very soon be hitting their bank accounts before the end of this year. Citizens should also stay vigilant, as this is yet another data breach settlement that provides information as to how easy it has become for personal data to be exposed and to be used for fraudulent activities, including identity theft. Citizens affected by this data breach should wait for payment to hit their bank accounts soon.
