TITLE: Texas Attorney General Secures $45 Million Settlement with Cash App for Consumer Fraud Protection
BODY:
On July 8, 2026, Texas Attorney General Ken Paxton announced a $45 million multistate settlement with Block, Inc. (Cash App), resolving allegations that the company misled consumers about platform safety and failed to provide adequate fraud protection as required by law. The settlement was reached following a multistate investigation co-led by Paxton and joined by 45 other states.
The investigation found that Cash App aggressively marketed its platform as a safe, bank-like alternative while failing to maintain adequate consumer protections. The company promoted direct deposit of paychecks and government benefits into Cash App, targeting consumers who relied on the app as their primary financial account. Despite rising fraud on the platform, Cash App maintained lax verification standards, provided no phone support for years, and used deceptive social media promotions that left users exposed to scammers. The company delayed internal fraud investigations, imposed unwarranted account lockouts, and failed to investigate unauthorized transactions or issue legally required refunds to victims.
Under the settlement terms, Cash App must establish 24-hour customer support, cease making misleading safety claims, discontinue marketing practices known to increase fraud, and fulfill its legal obligation to investigate and reimburse users for certain unauthorized transactions. Texas will receive approximately $5 million of the $45 million settlement. Attorney General Paxton said the settlement "ensures that Texans who were harmed can recover what they are owed" and sends a message that "exploiting consumers is not a business strategy—it's a liability."
The full settlement agreement is available on the Texas Attorney General's website.