A settlement reached by the company with federal and state regulators has revealed that Cash App made it difficult for users to reclaim lost funds due to fraudulent transactions, according to the Consumer Financial Protection Bureau. The bureau claimed that the company delayed refunds, misled users about responsibility for paying back claims, and made reporting fraud claims cumbersome. To avoid resolving users’ claims, the company used internal metrics, including “win rate” and “stick rate.” As part of a settlement, Cash App agreed to pay $80 million in fines to states, up to $120 million to fraud victims, and $55 million to the consumer bureau. The company will also set up a 24-hour hotline for responding to fraud claims. Block, the parent company, earned $1.3 billion in gross profits in the third quarter, while Cash App agreed last year to pay as much as $2,500 to each user whose personal data was stolen in breaches.
Source: https://www.nytimes.com/2025/01/16/business/cash-app-fraud-settlement.html