Cash App fined $45 million for false security promises, Block agrees to settle

CoinFeed July 9 news, according to The Block, Cash App parent company Block agreed to pay $45 million to settle allegations from regulators in nearly all U.S. states that it made false security promises. The New York Attorney General's office stated that Block marketed Cash App as offering protections comparable to traditional banks, leading users to mistakenly believe their funds were equally safeguarded, while lacking a consistent fraud detection system and failing to provide an effective customer reporting hotline. The states accused Block of failing to warn users despite knowing fraud was rising, instead increasing marketing efforts and targeting the unbanked population. Regulators also criticized Block for encouraging users to post their account identifiers during the 'Cash App Friday' promotion, leading scammers to contact users and trick them into disclosing login information.