Cash App users can now claim compensation from a $15 million settlement following allegations of security breaches and inadequate data protection measures. This settlement addresses unauthorized account access and fraudulent transactions that occurred between August 2018 and August 2024.
Background of the Lawsuit
The class action lawsuit was initiated by Michelle Salinas, Raymel Washington, and Amanda Gordon following significant security breaches. In 2022, a former Cash App Investing employee improperly accessed customer data, while additional breaches in 2023 involved unauthorized access through recycled phone numbers. Although Block (formerly Square) and Cash App Investing denied wrongdoing, they agreed to settle to avoid prolonged litigation.
Eligibility Requirements
Users qualify for compensation if they:
- Were Cash App or Cash App Investing customers during the specified period
- Experienced unauthorized access to their accounts
- Suffered unauthorized transactions or withdrawals
- Encountered difficulties resolving account errors between August 23, 2018, and August 20, 2024
Compensation Structure
The settlement offers multiple compensation categories:
- Up to $2,500 for documented out-of-pocket losses
- Compensation for lost time at $25 per hour (up to three hours)
- Reimbursement for unauthorized transaction losses
- Additional compensation for related expenses like credit monitoring
Claim Filing Process
To receive compensation, eligible users must:
- Verify their eligibility under settlement terms
- Collect supporting documentation
- Complete and submit the claim form by November 18, 2024
- Maintain updated contact information throughout the process
Documentation Requirements
Claimants need to provide:
- Financial statements showing unauthorized transactions
- Receipts for related expenses
- Police reports (if applicable)
- Correspondence regarding dispute resolution attempts
- Evidence of time spent addressing security issues
Settlement Distribution
The $15 million fund covers:
- Direct compensation to affected users
- Legal fees and costs
- Administrative expenses
- Service payments to class representatives If claims exceed the available funds, payments will be reduced proportionally among all claimants.
Impact and Implications
This settlement represents a significant development in digital finance security, highlighting:
- The importance of robust security measures
- Need for effective customer service
- Financial institutions’ responsibility to protect user data
- Growing focus on consumer protection in digital banking
Future Security Measures
The settlement also emphasizes the need for:
- Enhanced security protocols
- Better handling of customer complaints
- Improved data protection systems
- Stricter access controls for employees
Conclusion
The Cash App settlement provides an important opportunity for affected users to receive compensation for security-related losses. Users should act promptly to file claims before the November 18, 2024 deadline. This case serves as a reminder of the critical importance of data security in digital financial services and the need for companies to maintain robust protection measures for their customers.
For detailed information or assistance with claims, users should contact the Cash App Security Settlement Administrator through official channels. Remember to maintain copies of all submitted documentation and stay informed about any updates regarding the settlement process.
