Minnesota will receive about $638,000 from a multistate Cash App settlement after attorneys general said the payment app’s parent company misled users about safety and failed to provide promised fraud protection.
The settlement is with Block, Inc., the company behind Cash App, and totals $45 million across 46 states, according to KIMT.
The agreement resolves the states’ claims without Block admitting wrongdoing. Under the settlement, Block must make changes to Cash App’s fraud response, customer support, marketing, and consumer reimbursement practices.
States Said Cash App Was Marketed Like a Safer Financial Account
The investigation focused on how Cash App was advertised and how users were treated when fraud occurred.
Attorneys general said Block led consumers to believe Cash App offered bank-like safety features, including strong fraud detection and protection for money kept in the app. Investigators alleged that Block knew fraud was rising but continued marketing Cash App heavily, including to people who used the app as a primary financial account.
KSTP reported that Minnesota will receive approximately $639,000 from the settlement, or roughly 1.5% of the total.
Customer Support Failures Left Users Exposed
Investigators said Cash App went for years without live phone support, even as users were locked out of accounts or tried to report fraud.
Users searching online for help sometimes found fake customer-service numbers, reached criminals posing as Cash App representatives, and then lost access to accounts or other financial information.
The Consumer Financial Protection Bureau raised similar issues in a separate 2025 order, saying consumers looking for alternate Cash App support routes through web searches were targeted by fraudsters posing as company representatives.
Account Controls Made Fraud Easier to Scale
Investigators said the app’s sign-up process required limited identity verification, making it easier for fraudsters to create accounts and move money through the platform.
They also said users could open multiple accounts, giving bad actors more ways to receive payments, shift funds, and continue operating even after individual accounts raised suspicion.
Reuters reported that state attorneys general said Cash App accounts could be created without a Social Security number or date of birth, and that users could open unlimited accounts.
The Settlement Requires Better Fraud Response
Under the settlement, Block must maintain customer support that can handle fraud complaints, account lockouts, and similar problems. The company must offer live support 24 hours a day, including a human by phone for at least 13.5 hours a day and live chat for at least 18 hours a day.
Block must also stop making misleading claims about Cash App’s safety, discontinue marketing practices known to increase fraud, educate users about common scams, investigate fraud claims, and reimburse users for certain unauthorized transactions when required by law.
In a statement to KSTP, Block said the agreement resolves a previously disclosed legacy matter that primarily relates to historical aspects of its business. The company said Cash App has made significant investments in consumer protection, customer service, and compliance.
Consumer Restitution Is Separate From Minnesota’s Share
Minnesota’s roughly $638,000 share is part of the state settlement, not the same thing as direct restitution to Cash App users.
The multistate agreement also reaffirms Block’s commitment to distribute between $75 million and $120 million to compensate consumers nationwide as part of a separate Consumer Financial Protection Bureau settlement.
The CFPB said that prior order required Block to pay up to $120 million in refunds and other redress to consumers whose unauthorized transfers were not investigated, who did not receive refunds they were entitled to, or whose accounts were locked for an extended period without proper provisional credits.
Payment App Users Should Use Only Official Support Channels
Users should avoid sending money to strangers, pause before responding to urgent payment requests, and use only official support channels inside the app or on verified company pages.
Anyone who finds an unauthorized Cash App transaction should report it immediately to Cash App and to any linked bank, debit card, or credit card provider. Waiting can make it harder to stop the transfer, recover funds, or preserve dispute rights.
Useful records include transaction IDs, $cashtags, usernames, phone numbers, emails, screenshots, account-lockout notices, customer-service chats, bank statements, debit card records, and any messages from the person requesting or receiving the payment.
Suspected Cash App fraud can also be reported to the FTC at ReportFraud.ftc.gov, the CFPB at consumerfinance.gov/complaint, and local law enforcement if money was stolen or identity information was used.