$15M Settlement Reached In Cash App Data Breach Case: How To Claim Your Payout

Cash App users may be eligible for compensation worth up to $2,500 thanks to a recent $15 million settlement agreed to by the company following data breaches that compromised users' personal information.

Cash App users may be subject to a payout of up to $2,500 thanks to a new $15 million settlement.

Block Inc., the parent company of the popular electronic money-transferring platform, has agreed to the settlement following claims of negligence after two data breaches occurred via Cash App, compromising users’ personal information. Per the class action lawsuit, Block and Cash App Investing were found guilty of being “negligent” and breaching other obligations to users after a former employee accessed account data without permission in 2022.

During a 2022 filing with the U.S. Securities and Exchange Commission, Block revealed that roughly 8.2 million current and former users were being notified of the breach. Per the lawsuit, Block was also negligent in 2023 when “an unauthorized user” managed to access Cash App users’ accounts while using recycled phone numbers that were linked to previous accounts.

While Cash App, Cash App Investing, and Block have denied any liability or wrongdoing stated in the lawsuit, they have agreed to a settlement worth $15 million. At this time, eligible users either previously or currently use Cash App or Cash App Investing, have an account that was accessed without the proper permissions, or were on the opposite end of unauthorized bank withdrawals or transfers between Aug. 23, 2018, and Aug. 20, 2024.

Eligible users will be able to submit a claim of no more than $2,500 “for out-of-pocket losses” they may have experienced during the aforementioned timeframe. To accurately do so, consumers will have to provide “third-party documentation” that confirms the connection to “a data security incident, unauthorized account event, or deficiency in error resolution” as it pertains to a person’s Cash App or Cash App Investing account.

Additionally, eligible users can also submit a claim to be reimbursed for lost time and can receive up to $75 due to a cap of $25 an hour for three hours. They can also receive compensation for any documented transaction losses caused by “an unauthorized account event.” To qualify for the latter, individuals would have to submit at least one of the following options: “a copy of a notification of an unauthorized account event, a copy of a police report related to an unauthorized account event, or a document demonstrating your account was accessed without your permission.”

Only one claim can be filed per Cash App user, even if you have multiple accounts, and must be submitted by Nov. 18, 2024, via an online form or by mail. Those who wish to opt out of the settlement are required to mail in a written notice by Nov. 1; however, to qualify for the payout, users must still submit an official claim.

At this time, it has not yet been disclosed when the settlement payments will be dispersed, but the final approval hearing is set for Dec. 16, 2024, and is subject to rescheduling “without additional notice,” according to a website created for the settlement.