Cash App Settlement Market Insights

Cash App users may be eligible for a windfall following a 5 million settlement agreement related to Data breaches . The settlement , subject to approval by the District Court for the Northern District of California , aims to compensate users affected by security incidents in the last two years . In 2022 , Cash App reported a breach involving a former employee accessing account data without authorization . Another breach occurred a year later when unauthorized users accessed accounts through recycled phone numbers . Criticism was also directed at Cash App for failing to implement adequate controls to prevent unauthorized access.

Cash App and its parent company , Block Inc. , have entered into the settlement , denying any wrongdoing . If approved , part of the 5 million will cover legal fees , service payments , and settlement administration costs . Eligible participants include Cash App or Cash App Investing users who had unauthorized account access or fraudulent transactions between August 23 , 2018 , and August 20 , 2024 . Claimants may seek compensation for out - of - pocket expenses , lost time , and transaction losses , with coverage up to , 500 per class member for out - of - pocket losses.

Those affected can claim up to three hours of lost time at a rate of 5 per hour . To seek reimbursement for transaction losses , individuals can visit the settlement website for more details . The deadline for submitting claims is November 18 , 2024 . Additionally , Cash App may be required to pay up to 5 million in a class action settlement related to security incidents and unauthorized account access . Eligible users can file a claim and potentially receive up to , 500 in compensation.

The first data breach was attributed to a former employee who accessed customer information without permission , resulting in the publication of sensitive data from 8.2 million customers . Another breach occurred when unauthorized transactions were detected in customer accounts . Allegations of negligent security measures were made against Cash App and Block , although both companies have denied any misconduct . Customers who suspect their accounts were compromised or experienced fraudulent transactions between August 23 , 2018 , and August 20 , 2024 , are eligible to file a claim.

Documentation demonstrating the unauthorized access or transactions must be provided when submitting a claim . Customers have until November 18 to file a claim via the settlement website . Those who wish to retain the option to take legal action against Cash App in the future can opt - out of the settlement by submitting an exclusion claim by November 1 . Customers dissatisfied with the settlement terms can also lodge an objection by the same deadline.