Cash App's parent company Block agrees to pay $45 million in settlement over allegations of false security promises.

robot
Abstract generation in progress

Mars Finance News, July 9, Block, Inc., the parent company of Cash App, has agreed to pay $45 million to settle charges brought by regulators in nearly all U.S. states. Regulators alleged that the company failed to adequately protect users from scams and made misleading statements about Cash App’s security to users.

According to a statement released Wednesday by the New York State Attorney General’s office, Block, led by Jack Dorsey, claimed in marketing that Cash App provides security comparable to traditional banks, leading users to mistakenly believe their funds enjoy protections similar to bank deposits. Regulators also accused Block of lacking a unified and effective fraud monitoring system, and failing to provide a functional customer service hotline for users to report scams.

XYZ-1.32%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned