Block Inc. Pays $45 Million to Settle Multistate Fraud Claims

A coalition of 46 states, co-led by Oregon and Texas, reached a $45 million settlement with Block Inc. on July 8, 2026. The agreement resolves allegations that the parent company of Cash App misled consumers by advertising bank-like fraud protections while failing to implement adequate security measures. Investigators found that Block utilized a frictionless sign-up process with minimal identity verification and lacked phone support for years, which left users vulnerable to scammers and fake customer service lines. The states specifically cited the "Cash App Fridays" promotion as a tool that fraudsters used to steal user login information.

Under the terms of the settlement, Block must implement 24-hour live customer support—including human phone operators for at least 13.5 hours daily—and cease making misleading safety claims. The company must also fulfill legal obligations to investigate fraud and reimburse unauthorized transactions. While Block denies any wrongdoing, characterizing the agreement as a resolution to a legacy business matter, it agreed to these operational reforms.

Beyond the $45 million payout to states, Block is committed to distributing between $75 million and $120 million to compensate affected consumers nationwide through a separate consent order with the Consumer Financial Protection Bureau. Additionally, Block agreed to a separate $20 million settlement with Washington state regarding fraudulent unemployment insurance payments made during the COVID-19 pandemic. State recoveries from the multistate fund include $1.6 million for New York, $1.66 million for Colorado, and over $1 million for Pennsylvania.