Cash App customers may be able to claim more than $2,500 each as part of a $15 million class-action settlement for data and security breaches at the mobile payment service. People whose accounts were accessed without their authorization or who had fraudulent withdrawals or transfers can file claims, provided they had or currently have an account between August 23, 2018, and August 20, 2024, according to the settlement website. The class-action pointed to a 2021 incident the company disclosed in 2022, in which a former employee downloaded reports of some U.S. users without permission. It also noted another breach, disclosed in 2023, where an unauthorized user accessed some Cash App accounts using phone numbers that were linked to them.
Plaintiffs also alleged that Cash App and Block, the app’s parent company, failed to install controls to block unauthorized users and that the company then mishandled customer complaints about the security breaches and fraudulent transactions. Cash App and Block also agreed to take steps toward strengthening data security as part of the settlement. Cash App and Block have denied any wrongdoing. But to settle the litigation, they agreed to pay $15 million. Beyond attorneys’ fees and administration costs, that money will go to impacted customers who submit eligible claims. Customers can file claims straightforwardly, and this article breaks down the steps for those affected by the breaches to file their claims and explore their options.
How to File a Cash App Claim
To file a Cash App claim, customers must follow a straightforward process provided on the official settlement website. First, customers need to visit the website and locate the section designated for submitting claims. Once there, they will be required to enter specific verification details. These details include a notice ID and confirmation code from a notice received by mail or email. For those who haven’t received such a notice, an option to file a claim without it is available.
Next, it is crucial to submit only one claim form, even if multiple accounts are involved. Customers should include all their $Cashtag identifiers—the unique usernames created for each account—and provide comprehensive information about all claims on that single form. This ensures that all accounts are accounted for under one submission, simplifying the process for both the claimant and the administrators.
Documentation and Deadline
Timing is also vital; customers must ensure they file their claims before the deadline of November 18. Any claims submitted after this date will not be considered as part of the settlement. Besides timely submission, customers must provide third-party documentation to support their claims for out-of-pocket losses up to $2,500. This documentation includes costs for credit monitoring or identity theft insurance, requesting a credit report or a credit freeze, and any costs incurred from canceling or replacing a payment card. Additionally, expenses related to closing a bank account and opening a new one also qualify, as well as any overdraft or late fees that have not been refunded.
In addition to out-of-pocket expenses, customers can claim up to three hours of lost time, reimbursed at a rate of $25 per hour. It’s important to note that claims for transaction losses necessitate submitting further documentation, such as a copy of a police report. This thorough process ensures that only legitimate claims are approved and compensated.
Address Change Notification
After filing a claim, it’s crucial for customers to keep their contact information up to date. If a person moves after submitting their claim, they must notify the claims administrator of their new mailing address. To do this, they can either call 1-866-615-9740 or send a written notification to the Cash App Security Settlement Administrator at 1650 Arch Street, Suite 2210, Philadelphia, PA 19103. Keeping contact information current ensures that claimants receive any necessary communications about their claims and potential payouts.
Options Apart from Filing a Claim
Customers also have several options other than filing a claim, particularly if they wish to retain the right to take separate legal action. One such option is to opt out of the settlement altogether. To do this, affected individuals must exclude themselves by November 1. By opting out, they retain the right to sue or be involved in another related lawsuit against the defendants in the future.
Alternatively, individuals who have objections to the settlement terms can write to the court before November 1 to express their concerns. This allows plaintiffs to voice any issues they believe should be addressed before the final approval of the settlement. Lastly, individuals can choose to do nothing. However, this route means they will not receive any payment from the settlement and will also waive their right to pursue any further legal action related to this case in the future.
Safety of Using Payment Apps
Cash App users might be eligible to claim over $2,500 each in a $15 million class-action settlement stemming from data breaches. Customers who experienced unauthorized access to their accounts or fraudulent transactions can file claims if they held an account between August 23, 2018, and August 20, 2024. This settlement follows a 2021 incident, where a former employee accessed reports of U.S. users without permission, which was revealed in 2022. Another breach in 2023 involved unauthorized users accessing accounts using linked phone numbers.
The plaintiffs accused Cash App and its parent company, Block, of failing to implement adequate controls to prevent unauthorized access and poorly handling customer complaints. As part of the settlement, Cash App and Block have committed to improving data security, though they deny any wrongdoing. They agreed to pay $15 million, which will be distributed to affected customers after deducting attorneys’ fees and administrative costs. Filing a claim is straightforward, and this guide aims to help those affected by the breaches to file their claims and understand their options.
