Cash App parent Block will pay $45 million to settle user security allegations

On 9 July, the Kash App parent company, Block Inc., recently reconciled with prosecutors in nearly 50 states of the United States and agreed to pay $45 million to address allegations of its failure to effectively protect users from fraud and misleading user security measures. According to the Attorney General ' s Office of New York State, the marketing of Cash App as an equivalent to the protection function of traditional banks led users to wrongly secure their funds to the same extent. The investigation found deficiencies in the fraud detection system and the failure to provide an effective fraud hotline. In addition, regulators have questioned their “Cash App Friday” promotional activities to induce users to leak login information, resulting in significant financial losses to users. As part of the settlement agreement, Block is required to commit to maintaining all-weather manual passenger service to deal with fraud complaints and to stop promoting the existence of a security statement equivalent to that of a bank on its platform. Block denied misconduct in the settlement agreement, stating that it was intended to address issues related to its business history。