Cash App is expected to pay out up to $15 million in a class action settlement due to two data security incidents and company practices around unauthorized account access and fraudulent transactions, meaning eligible Cash App users can now file a claim and could receive up to $2,500.In a filing with the US Securities and Exchange Commission, Cash App explained that the first data breach occurred due to a former employee. “We determined that a former employee downloaded certain reports of our subsidiary Cash App Investing in December 2021 that contained some US customer information without permission after the former employee’s employment ended,” Cash App said. According to the class action lawsuit, this ex-staffer’s actions and access to customer information resulted in 8.2 million Cash App customers’ sensitive personal information being published online. Last year, another data breach occurred when Cash App found some customers’ accounts had been accessed and unauthorized transactions occurred.The class action complaint alleges that Cash App and its parent company Block (formerly Square) have “negligent security features, protocol, systems, screening, and design.” Cash App and Block, however, have denied any wrongdoing. PCMag has reached out to Cash App for comment.Who can file a claim? Any Cash App or Cash App Investing customers who suspect their Cash App accounts were accessed by an unauthorized entity, saw fraudulent transactions on their accounts, believe a Cash App error resolution was inadequate, or otherwise saw their sensitive personal information swiped via Cash App between August 23, 2018 and August 20, 2024 are eligible to file a claim.
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When submitting a claim for transaction-based losses because someone breached your account, you’ll need to provide documentation showing it happened and you took steps to report it. Any correspondence with Cash App relating to the incident, a police report, a report with your bank or credit union, a report to the FTC or other government agency, or a report with the Better Business Bureau, for example, may suffice as adequate documentation as long as it was made within the aforementioned time period. Those eligible must file a claim by November 18 this year via the settlement’s official website.If you’re eligible but would like to opt out of the settlement and still retain your future right to take legal action against Cash App, the deadline to file an exclusion claim is November 1 this year. Those who take issue with the settlement can also file an objection by November 1.
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