If you’ve used Cash App in recent years, there’s good news: you might be eligible to claim compensation in a class-action settlement. Cash App proposed a US$15 million settlement earlier this year in response to two data security breaches that affected millions of users. The deadline to claim your share is approaching so here’s everything you need to know.
The first breach impacted millions in 2021
The initial breach occurred in December 2021, when a former Cash App employee reportedly accessed and downloaded reports containing sensitive information from more than 8 million users. Cash App disclosed the incident in April 2022, revealing that the exposed data included full names, brokerage account numbers, and, in some cases, investment portfolio holdings and values. This was a significant security lapse for Cash App’s brokerage services, causing users to question the app’s commitment to protecting sensitive data.
Allegations of insufficient security measures
The second security incident involved claims that Cash App’s parent company, Block, failed to enforce adequate security practices for its popular person-to-person payment platform. According to a consolidated class-action complaint, an unauthorised individual accessed certain Cash App accounts in 2023 through recycled phone numbers. The plaintiffs argued that Cash App and Block mishandled complaints about this breach and did not act swiftly enough on fraudulent transaction reports.
The lawsuit contends that the two breaches and inadequate responses from Cash App and Block indicate a lack of effective security measures to protect user accounts. Despite the allegations, Cash App and Block have denied any wrongdoing, maintaining that their US$15 million settlement is not an admission of liability but a resolution for affected users. Cash App representatives confirmed this position, which was later reported by The New York Times.
Who is eligible, and how to make a claim
If you held a Cash App account between August 23, 2018, and August 20, 2024, you may be eligible to submit a claim under the settlement. The compensation package includes reimbursement of up to US$2,500 for out-of-pocket costs directly related to the breaches. Additionally, affected users can claim up to three hours of lost time, valued at US$25 per hour. If you experienced financial losses that haven’t yet been reimbursed, you can include those in your claim.
The deadline to submit your claim is approaching fast: you must file through the settlement website by 2 AM ET on November 19. If you qualify, the claims process is relatively straightforward, but you’ll need to gather any supporting documents for costs incurred due to these breaches. A final court hearing in the case is scheduled for December 16, at which point the court will decide on the settlement terms and, if approved, distribution of the funds to claimants.
With only a few weeks left to file, eligible users should act promptly to secure any compensation they may be entitled to.
