If you are a Cash App customer, you could be seeing payments of up to $3,000 in your bank account soon. As a result of the Cash App data breach settlement, millions of Cash App users could receive their share from this major class action settlement. The data breach settlement affected Cash App users as well as Cash App’s parent company, Block Inc., users. Although Cash App and its parent company have not admitted to any wrongdoing, the companies have agreed to pay $15 million to have all claims against them resolved.
The reason behind legal action being taken against Cash App
Back in 2022, in April, Cash App disclosed information about a data breach caused by an ex-employee who gained unauthorized access to consumer information. This was further followed by news of a data breach in October 2023 by its parent company, Block Inc. According to this data breach, the data of 8,2 million customers was expose,d resulting in scrutiny against both the parent company and its subsidiary.
The companies involved in the class action lawsuit (called Salinas et al. v. Block, Inc. and Cash App Investing, LLC) were accused of failing to secure users’ data and negligence. A settlement fee of $15 million was decided upon to provide compensation to users who incurred financial loss or were exposed to fraudulent activities as a result of this data breach.
Understanding the eligibility criteria for this class action settlement
Citizens wondering what the requirements were to be deemed eligible for a sum of money from this class action lawsuit can take note of the following eligibility criteria. Firstly, users were allowed to claim if:
- They were customers of Cash App Investing, Cash App, or Block, Inc.
- They had their personal information accessed as a result of the data breach.
- They had to deal with unauthorized withdrawals or even transfers between August 23, 2018, and August 20, 2024.
All customers who experienced out-of-the-pocket losses could be eligible to receive $2,500 along with compensation for lost time up to three hours. The rate offered is $25 per hour. Customers who will be compensated for out-of-the-pocket expenses are those who have documentation proving transaction losses or can show proof of fraudulent withdrawals. In total, eligible consumers will be able to claim up to $3,000 due to this settlement agreement.
To receive a share of the settlement fee, eligible claimants needed to have made a claim by November 18, 2024. At this point, late claims are no longer accepted as the November 2024 deadline has long passed. There are still, however, two months left to claim this Imagine360 data breach settlement.
When to anticipate your Cash App payments
The final settlement was approved in court on January 13, 2025, which means that all payments will be made to claimants before year-end. At this point, the exact date in 2025 that claimants will receive their payments has not yet been specified, however, the allocation of payments to eligible claimants is already being processed. All approved claims will get paid directly into claimants’ bank accounts.
As per the Cash App Security Settlement, eligible claimants should expect:
- Reimbursement for all documented losses and a settlement fee amount for lost time.
- Payments for lost time, subject to review.
- Claimants will receive payments in the form of direct deposits if banking information was provided.
- If direct deposit information was not provided by eligible claimants, payments may be in the form of checks via mail.
Eligible claimants who haven’t received payments by the end of 2025 can mail or contact the Cash App Security Settlement Administrator. This is yet another data breach settlement similar to the Ingo Money’s data breach settlement that has raised concerns of whether digital information of users is really secure. However, this payout may offer some relief to all affected users.
