Block is accused of equating the security of Cash App with that of traditional banks, and has reached a settlement of 45 million dollars

According to The Block, Cash App's parent company Block has agreed to pay $45 million to settle with regulatory agencies in nearly 50 states in the U.S. over allegations of misleading security promotions and insufficient anti-fraud measures. Regulators accused Block of marketing Cash App as having security protections comparable to traditional banks, but failing to establish a comprehensive fraud detection system and not providing an effective fraud reporting hotline, resulting in users suffering losses from scams.

Additionally, regulators accused Block of continuing marketing activities despite being aware of the increase in scams and amplifying scam risks in promotional activities. Under the settlement agreement, Block must improve customer support services, provide 24-hour live customer service, and cease related promotions regarding Cash App's security. Block denies any wrongdoing, stating that the settlement involves previously disclosed legacy issues.