If you're one of the 50 million Cash App users, you might be entitled to some money.
The mobile banking app was hit with a class action lawsuit for failing to protect its users from several security breaches that occurred in 2022 and 2023. Block Inc., which owns Cash App denies any wrongdoing but has agreed to settle for $15 million. That means, Cash App users are entitled to up to $2,500 by submitting a claim online.
Cash App, whose parent company Block Inc. (formerly known as Square) was founded by Jack Dorsey, surged in popularity on Reddit as a Robinhood alternative for trading Bitcoin and stocks. Then in 2021, a former employee downloaded investing reports, gaining access to users' personal financial data. Another breach occurred in 2023 by using recycled phone numbers linked to user accounts to access financial information. According to the complaint, given the multiple breaches, Cash App "utterly failed to properly secure and protect customer accounts."
Who Is Eligible for Compensation
According to the settlement website, users are eligible for compensation if:
- You're a current or former Cash App user
- Your personal information or account information was accessed or obtained without your authorization
- You experienced fraudulent transactions between August 23, 2018 through August 20, 2024
How to File a Claim
Cash App users must submit a claim on the settlement website no later than November 18, 2024. Depending on the type of claim, users an receive reimbursement for out-of-pocket losses, lost time, or fraudulent charges. If fraudulent activity occurred as a result of the breach, users might also need to provide additional information like receipts or a police report.
What are the Different Types of Claims?
The settlement outlines three types of claims:
1. Out-of-Pocket Losses
This claim category covers financial losses incurred as a direct result of the breaches. This can include costs associated with identity theft protection services, credit monitoring services, credit report retrieval, credit freezes, new bank account opening fees, and replacement credit card fees.
2. Lost Time
If you spent time addressing issues related to the breach, you may be eligible for compensation. This could involve time spent contacting Cash App, disputing unauthorized transactions, reporting fraud, or dealing with any other related issues. The settlement allows for a maximum of three hours of lost time at a rate of $25 per hour.
3. Transaction Losses
This category covers instances where you experienced unauthorized transactions, fraudulent charges, or other financial losses stemming from the data breaches. You might need to provide documentation to support your claim, such as receipts, bank statements, or police reports.
Don't Miss the Deadline
Remember, the deadline to submit your claim is November 18, 2024. Make sure to visit the settlement website and gather all the necessary information to ensure your claim is processed correctly. It's important to take action now to potentially recover any financial losses or inconvenience caused by these breaches.
Final Thoughts: Cash App Data Breach Settlement
The Cash App data breach settlement highlights the increasing importance of cybersecurity in the digital age. As more people rely on mobile payment services and online transactions, it becomes crucial for companies to prioritize data security measures to protect their users. This settlement serves as a reminder to all consumers to be vigilant about protecting their personal information and to be aware of potential risks associated with online services. It is also a testament to the power of class action lawsuits in holding companies accountable for negligence and security breaches.
