In recent years, the use of digital payment platforms has become increasingly popular, with Cash App being one of the most widely used services for money transfers and transactions. However, a recent class action lawsuit has brought to light some concerning issues regarding the security and privacy of Cash App users.
The lawsuit, filed against Block Inc. (the parent company of Cash App) and Cash App Investing, alleges that in 2022, a former employee accessed account data without permission, putting the private information of millions of users at risk. This breach of security led to Block notifying approximately 8.2 million current and former users about the incident, highlighting the severity of the breach.
But the problems did not stop there. The lawsuit also claims that in the following year, an unauthorized user was able to gain access to Cash App accounts using recycled phone numbers linked to those accounts. This further demonstrates the negligence on the part of Block and Cash App Investing in implementing adequate security measures to protect their users’ data and prevent unauthorized access.
In response to these allegations, Block and Cash App Investing have denied any liability or wrongdoing but have agreed to a $15 million settlement to resolve the issue. This settlement aims to compensate users who have experienced unauthorized or fraudulent transactions on their accounts between August 23, 2018, and August 20, 2024.
To be eligible for the settlement, individuals must have been or currently be users of Cash App and/or Cash App Investing, had their account accessed without permission, and experienced unauthorized or fraudulent withdrawals or transfers during the specified timeframe. The case reference for this lawsuit is Salinas, et al. v. Block, Inc. and Cash App Investing, LLC, Case No. 22-cv-04823, in the District Court for the Northern District of California.
This lawsuit serves as a reminder of the importance of data security and the need for companies to prioritize the protection of their users’ information. As digital payment platforms continue to grow in popularity, it is crucial for users to remain vigilant and take necessary precautions to safeguard their personal and financial data.
