Cash App users who've felt the sting of unauthorized access and fraudulent transactions have a window of opportunity, but it's closing soon. A $15 million class-action lawsuit settlement offers restitution, with some individuals eligible for up to $2,500. Those who believe they are affected must act before the deadline on November 18, according to information from FOX 5 Atlanta.
The crux of the lawsuit alleges that Cash App, and its parent tech firm Block, did not adequately address two significant data breaches. Additionally, claims suggest Cash App did not adequately fortify its security measures, nor did it respond efficiently to customer complaints regarding fraudulent transactions. Block, however, steadfastly denies any wrongdoing, yet has agreed to the multimillion-dollar settlement, as noted by CBS News.
Filing a claim is straightforward for Cash App users. To be eligible, your account must have been active between August 23, 2018 and August 24, 2024. Those who have incurred losses due to unauthorized access or fraudulent activity can submit claims via a dedicated settlement website. Claimants are required to provide documentation of losses, including costs associated with unauthorized transactions, and potentially up to three hours of lost time at $25 per hour.
Those who opt to sit on the sidelines will not receive compensation and forfeit future legal claims covered by the settlement. To be excluded from the settlement and retain the ability to sue separately, class members must opt out before November 1. Objections to the settlement agreement can also be voiced, but these too must be submitted to the court before the early November cut-off. A final approval hearing for the settlement is scheduled for December 16, and changes to court dates will be posted on the settlement site, as reported by CBS News.
The situation raises concerns over the safety of payment apps. While convenient, Cash App along with peers like Zelle and Venmo, frequently find themselves targets of scammers. Users are advised to proceed with caution, confirming the identity of recipients and eschewing links in surprise communications, according to the American Bankers Association and the Federal Trade Commission.
