Aggrostats

Attorney General Liz Murrill today announced a $45 millionmultistate settlement with Block, Inc., the company behind the popularpeer-to-peer payments app Cash App. Louisiana will receive $557,086.81 fromthe multistate settlement. The settlement also reaffirms Block's commitmentto distribute between $75 million and $120 million to compensate consumersnationwide as part of its settlement with the Consumer Financial ProtectionBureau (CFPB).

The settlement resolves allegations that Block misledconsumers about the safety of Cash App, failed to protect users from fraud onthe platform, and didn't provide the fraud protection and resolution that itpromised and that was required by law. In short, the company failed to helppeople when things went wrong.

"Cash App promised consumers a safe way tosend and receive money, but too many Louisianans were left on their own whenfraud occurred. Companies that handle people's money have a responsibility toprotect their customers and follow the law. If they don't, we will hold themaccountable,” said Attorney General Murrill.

Block told Cash App users their money was safe – implyingthat the app worked like a bank, with the same protections, which wasn't true.At the same time, Block knew fraud on its platform was rising sharply – andinstead of warning users or strengthening protections, it doubled down onmarketing.

For years, Block actively promoted direct deposits ofpaychecks and government benefits into Cash App. It made a particular push toreach unbanked and underbanked consumers – people who would often rely on CashApp as their primary financial account, and who were especially vulnerable tofraud. Block grew its user base without making sure it could support thoseusers when problems arose.

Block's policies didn't just fail to stop fraud – inseveral ways they made it easier:

• Block's sign-up process was designed to be fast andfrictionless, with minimal identity verification. That made it easy forfraudsters to create accounts, not just legitimate users.
• For years, Cash App had no phone support. Users whoneeded help could only message through the app or on social media. People whogot locked out – or just wanted to talk to someone – searched online for aphone number and often ended up calling fake 1-800 numbers run by scammersposing as Cash App. Those scammers would then take over accounts or drainusers' other financial accounts. Block knew this was happening and didn't warnusers or set up a real phone line until years later.
• Block ran a social media promotion called Cash AppFridays, encouraging users to publicly post their $cashtag – a unique Cash Appidentifier – for a chance to win a weekly prize. Fraudsters would then contactthose users, tell them they'd won, and trick them into handing over their logininformation. Block knew about these scams and kept running the promotionanyway, for years.

Block's failure to provide adequate customer service and tofulfill its promise to protect users from fraud had real consequences for realpeople. Innocent users who experienced automated account locks for suspicioustransactions were frequently locked out of their accounts for weeks without away to access their money. Victims of fraud through the app were often leftwith no recourse because delays made it impossible to recover stolen money fromscammers and because Block failed to investigate unauthorized transactions andfailed to issue refunds when required by law.

Under the settlement, Block has agreed to implement andmaintain responsible practices to resolve these issues, including to:

• Maintain customer support that can resolve fraudcomplaints, account lockouts, and other problems.
• Offer live support 24 hours a day, with a human availableby phone at least 13.5 hours a day and by live chat at least 18 hours a day.
• Stop making false or misleading claims about Cash App'ssafety and how it protects users from fraud.
• Discontinue marketing practices known to increase fraudon the platform.
• Directly educate consumers about common types of fraud.
• Fulfill its legal obligations to investigate fraud claimsand reimburse users for unauthorized transactions.

Additional information regarding the CFPB settlement isavailable at: https://www.consumerfinance.gov/enforcement/actions/block-inc/ and https://cashappcfpbsettlement.com/.

About the Investigation:

Oregon and Texas led the investigation, securing relief forall 46 participating states, including Louisiana.