Cash App users affected by past security breaches may be eligible for compensation as part of a $15 million class action lawsuit settlement. As reported by CW39, the lawsuit accused Block Inc., the company behind Cash App, of failing to adequately protect customer information. The breaches involved two incidents: a 2021 breach where a former employee accessed user data, and a 2023 incident in which an unauthorized user exploited recycled phone numbers to access accounts.
The deadline to file a claim for the $15 million Cash App class action settlement is approaching next Monday, Nov. 18. Eligible users who experienced unauthorized or fraudulent activity on their accounts between Aug. 23, 2018, and Aug. 20 of this year, may be entitled to up to $2,500. While Block Inc. and Cash App Investing deny any wrongdoing, they are offering this settlement, with details on eligibility and the claims process available on a dedicated settlement website, as per CW39.
According to the Houston Chronicle, claims can fall into three categories: out-of-pocket losses, reimbursement for lost time, or transaction losses. To qualify for out-of-pocket losses, individuals must provide third-party documentation linking the monetary damage directly to the security incidents. Customers can also claim for lost time, which is capped at a reimbursement rate of $25 an hour for three hours, totaling $75.
Furthermore, transaction loss claims need at least a single piece of evidence, such as an alert about an unauthorized account event or a copy of a police report. The final approval hearing for the settlement, initially set for Dec. 16, has been rescheduled, pending court approval for Jan. 13, 2025, as updated by CW39.
Claimants have a limited window to complete and submit their forms to be considered for reimbursement. Those who did not receive direct mail or email notices but believe they are impacted can still submit a claim online. The settlement offers a potential financial remedy for users who experienced issues with the security of their personal and financial data.
