Queen Creek, Arizona — Arizona has joined a $45 million multistate settlement with Block, Inc., the company that operates the widely used Cash App payment platform, Attorney General Kris Mayes announced Thursday. The agreement resolves claims that the firm misled users about how safe the app was and failed to shield them from fraud on the platform.
Under the consent judgment, Arizona will receive $761,415.15. That money is to be deposited into the state's Consumer Protection-Consumer Fraud Revolving Fund under A.R.S. § 44-1531.01, where it can support future enforcement work. Oregon and Texas led the investigation, joined by 44 other states, and the deal secures relief for all 46 participating states.
Regulators said Block encouraged users to route paychecks and government benefits through Cash App, with a particular push toward unbanked and underbanked consumers who came to treat the app as a primary account. At the same time, the company's sign-up process required little identity checking, which made it easier for fraudsters to open accounts, and it offered no phone support for years — leaving locked-out users to search for help and sometimes reach scammers posing as company staff. A social media promotion that encouraged people to post their payment handles reportedly drew additional impersonation schemes.
"Block told Cash App users their money was safe — implying that the app worked like a bank, with the same protections, which wasn't true," said Attorney General Mayes. "At the same time, Block knew fraud on its platform was rising sharply — and instead of warning users or strengthening protections, it doubled down on marketing."
As part of the settlement, Block agreed to maintain customer support that can resolve fraud complaints and account lockouts, offer live help around the clock, stop making misleading safety claims, end marketing practices that increased fraud, and reimburse users for unauthorized transactions. The deal also reaffirms a separate commitment to distribute between $75 million and $120 million to consumers nationwide through a settlement with the federal Consumer Financial Protection Bureau.
