Cash App customers can now claim more than $2,500 each in a $15 million settlement. Here's how.

Cash App Users Could Be Eligible for Over $2,500 in a $15 Million Data Breach Settlement

Cash App users may be eligible to receive over $2,500 each as part of a $15 million class-action settlement concerning multiple data and security breaches. If your account was accessed without your authorization or if you experienced fraudulent withdrawals or transfers, you may be entitled to file a claim. This settlement covers users who had or still have an account between August 23, 2018, and August 20, 2024, according to the settlement’s official website.

The roots of this class-action lawsuit trace back to a significant 2021 data breach, which Cash App's parent company, Block, disclosed in 2022. The breach involved a former employee who allegedly downloaded reports containing sensitive information about U.S. users without permission. This unauthorized access exposed numerous users to potential risks and created a wave of concern about the security measures in place at Cash App.

Adding to this, another breach was disclosed in 2023, where an unauthorized user gained access to several Cash App accounts using phone numbers linked to those accounts. These incidents have fueled concerns about the robustness of Cash App’s security infrastructure and the company’s ability to protect its users from fraud and unauthorized access.

Allegations Against Cash App and Block

Plaintiffs in the lawsuit allege that Cash App and Block failed to implement sufficient controls to prevent unauthorized access to users' accounts. They also claim that the companies mishandled customer complaints related to these security breaches and fraudulent transactions. According to the lawsuit, the companies’ inadequate response to these incidents has left users vulnerable and unprotected.

While Cash App and Block have denied any wrongdoing, they have agreed to pay $15 million to settle the litigation. Beyond paying for attorneys' fees and administration costs, the remaining settlement funds will be distributed to impacted customers who submit eligible claims. As part of the settlement, Cash App and Block have also committed to taking steps to strengthen their data security measures, aiming to prevent such breaches from occurring in the future.

How to File a Claim

To file a claim, visit the settlement website. You’ll need a notice ID and confirmation code from a mailed or emailed notice, or you can file a claim even if you haven’t received such a notice.

Deadline for Filing a Claim

Customers must submit their claims by November 18, 2024. This deadline is crucial, as missing it will forfeit your chance to receive compensation from the settlement.

Potential Compensation

The exact amount each customer will receive depends on the number of claims filed. Those who were affected by the data and security breaches can submit claims for up to $2,500 to cover out-of-pocket losses, provided they have third-party documentation to support their claims. Eligible out-of-pocket expenses include:

• Costs for credit monitoring, identity theft insurance, credit report requests, or credit freezes.

• Fees for canceling or replacing payment cards.

• Expenses related to closing and opening bank accounts.

• Overdraft fees and late payment charges that haven’t been refunded.

Additionally, customers can claim compensation for up to three hours of lost time, reimbursed at a rate of $25 per hour. If you’ve experienced financial losses due to unauthorized transactions, you can also file a claim to recover those losses. However, you’ll need to provide documentation, such as a police report or bank statements, to substantiate your claim.

What Happens If the Settlement Fund Is Insufficient?

If the $15 million settlement fund isn’t enough to fully cover all claims, payments will be made on a reduced pro-rata basis. This means that each eligible claimant will receive a proportionate share of the settlement fund, depending on the total number of claims filed.

Other Options

If you prefer not to participate in the settlement, you have the option to exclude yourself or "opt out" by November 1, 2024. Opting out allows you to retain the right to sue or join another lawsuit against Cash App and Block in the future. Additionally, you can object to the terms of the settlement by submitting a written objection to the court before November 1, 2024.

If you choose to do nothing, you will not receive any payment from the settlement and may also lose the right to pursue further legal action related to these claims.

This settlement highlights the importance of data security and the potential consequences for companies that fail to protect their users’ personal information. As technology continues to evolve, it’s crucial for businesses to stay ahead of potential threats and ensure that their security measures are robust enough to safeguard their customers.

— With additional reporting from the Associated Press.