The owner of Cash App, Block, has been ordered by the Consumer Financial Protection Bureau (CFPB) to pay up to $120 million to victims of fraud on its platform, in addition to a $55 million fine. The CFPB stated that Cash App’s security measures were insufficient, allowing fraudulent activity to flourish and that investigations into unauthorized transactions were “woefully incomplete.”
The CFPB accused Cash App of redirecting fraud victims to their banks to reverse charges, only for the app to deny the claims later. “Cash App created the conditions for fraud to proliferate on its popular payment platform,” said CFPB Director Rohit Chopra. While Cash App acknowledged the issues, particularly the challenges posed by a surge in users during the pandemic, it emphasized that it had since invested in improving customer service and fraud prevention. The company also expressed its desire to settle the matter, stating that it no longer reflects the current Cash App experience. Additionally, state regulators recently fined Block $80 million for violations of anti-money laundering laws.
Peoplesmind
