If you’ve used Cash App in the last six years, you might be entitled to up to $2,500 as part of a $15 million class-action settlement. This settlement stems from two data breaches that impacted Cash App users in 2021 and 2023.
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The first major breach was revealed in a regulatory filing in 2022 by Block, the parent company of Cash App.
The breach involved a former employee who after leaving the company downloaded corporate reports that contained sensitive information about Cash App Investing users.
A second breach occurred in 2023, this time involving Cash App’s person-to-person payment services.
This breach affected more customers and was attributed to the defendants’ failure to implement security measures.
Unauthorized users accessed certain accounts leading to fraudulent transactions and the exposure of sensitive personal information.
A class-action complaint was filed in February 2024 in the United States District Court for the Northern District of California.
The complaint alleged that Block and Cash App were negligent in allowing unauthorized access to personal identification information and mishandled customer complaints related to the breaches and fraudulent transactions.
In March 2024, a proposed $15 million settlement was filed. This settlement, while not an admission of liability by Block and Cash App. The settlement specifically covers out-of-pocket losses, lost time and other related costs.
The settlement covers individuals who held Cash App accounts between August 23, 2018 and August 20, 2024. This includes both current and former customers of Cash App and Cash App Investing.
You are eligible to submit a claim if you meet any of the following conditions, Your personal information, Cash App account or Cash App Investing account was accessed or obtained without your authorization.
You experienced unauthorized or fraudulent withdrawals or transfers of funds to or from your account.
You encountered a deficiency in the resolution of an error in your Cash App account or any linked financial account.
Eligible users can claim up to $2,500 for out-of-pocket losses. Additionally the settlement provides for reimbursement of lost time, calculated at $25 per hour for up to three hours.
To claim out-of-pocket losses, users must provide third-party documentation such as receipts or other forms of proof to substantiate their claims.
When submitting a claim, it is crucial to include a brief description of the losses incurred and provide supporting third-party documentation. This documentation may include Receipts for expenses directly related to the breach.
Bank statements showing unauthorized transactions. Any correspondence with Cash App or other entities regarding the breach or fraudulent activity.
Any Cash App user who had an account between August 23, 2018 and August 20, 2024, may be eligible for compensation if they experienced unauthorized access to their account or suffered financial losses due to the breaches.
Users who had funds fraudulently withdrawn or transferred from their accounts can claim up to $2,500.
The settlement also covers expenses such as, Costs for credit monitoring or identity theft insurance. Fees for obtaining a credit report or initiating a credit freeze.
Costs associated with canceling or replacing a payment card. Expenses incurred from closing a bank account and opening a new one.
Overdraft or late payment fees that were not refunded. Users can claim up to three hours of lost time at a rate of $25 per hour.
This could include time spent resolving issues related to the breaches such as contacting customer service, filing police reports or securing accounts.
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Claims can be filed through the settlement website. Users will need to provide a notice ID and confirmation code if they received a mailed or emailed notice.
Those who did not receive a notice can still file a claim by providing relevant details about their account and the losses they incurred.
Claims for reimbursement must be supported by third-party documentation such as bank statements, credit card statements or police reports to prove the expenses or losses.
The deadline to file a claim is November 18, 2024. It is crucial for eligible users to submit their claims by this date to be considered for compensation.
Once a claim is submitted, it will undergo a review process to verify the eligibility and validity of the claim. This includes checking the documentation provided and ensuring the claim meets the settlement criteria.
The exact amount each claimant receives will depend on the number of valid claims filed. If the total claims exceed the settlement fund, payments may be distributed on a pro rata basis, meaning each claimant could receive less than the maximum $2,500.
Users who wish to pursue individual legal action against Cash App and Block can choose to opt out of the settlement by November 1, 2024.
Opting out allows you to retain the right to sue the company independently. Users can also object to the settlement terms by writing to the court before November 1, 2024.
This option is for those who believe the settlement is unfair or inadequate. If a user decides to take no action, they will not receive any compensation and will forfeit the right to file a lawsuit related to the claims covered by the settlement.
The deadline to submit a claim is November 18, 2024. This means that all online submissions must be completed or mail-in claims postmarked, by this date.
There may be discrepancies in the deadline dates on different forms or documents. The official deadline for claims submission is November 18, 2024, but some forms might list October 15, 2024. It is advisable to submit claims as early as possible to avoid any issues.
A final court hearing to approve the settlement is scheduled for December 16, 2024. If the court approves the settlement, the distribution of payments will follow shortly after.
After the court’s final approval, the settlement administrator will begin processing payments to eligible claimants.
The exact timeline for receiving payments will depend on the number of claims submitted and the time required to verify and process each claim.
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