Attorney General Brown Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App - News - Office of the Attorney General of Maryland
This enforcement action against Block Inc. for deceptive practices on its Cash App peer-to-peer payment platform directly targets a payments institution's conduct violations.
Cash App functions as an e-money wallet enabling stored value and electronic payments, making e-money regulation relevant to the fraud protection and safeguarding failures alleged.
Specialism
The settlement directly addresses Block's deceptive marketing claims about Cash App's security and fraud protections, requiring corrective advertising disclosures and cessation of misleading safety claims.
The settlement mandates fraud protection improvements, dispute resolution processes, and reimbursement for unauthorized transactions, which are core customer protection obligations in payment services.
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TITLE: Maryland Attorney General Announces $45 Million Multistate Settlement with Block Inc. Over Cash App Deceptive Practices
BODY:
On July 8, 2026, Maryland Attorney General Anthony G. Brown announced a $45 million multistate settlement with Block, Inc., resolving allegations that the company engaged in deceptive practices on its peer-to-peer payment application Cash App. The settlement addresses claims that Block misled consumers about Cash App's security, failed to protect users from fraud, and did not provide promised fraud protection and resolution processes required by law.
According to Attorney General Brown, Block falsely implied that Cash App provided protections comparable to traditional banking services while knowing that fraudulent activity on the platform was rising sharply. Rather than warning users or strengthening protections, Block intensified its marketing efforts, particularly targeting unbanked and underbanked consumers who relied on Cash App as their primary financial account. The settlement strengthens the company's fraud and dispute resolution practices through injunctive terms requiring Block to maintain 24-hour customer support with human availability by phone for at least 13.5 hours daily and by live chat for at least 18 hours daily; cease making false or misleading claims about Cash App's safety; discontinue marketing practices known to increase fraud; directly educate consumers about common fraud types; and fulfill legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.
The settlement includes a $75 to $120 million restitution program for fraud victims, administered through the Consumer Financial Protection Bureau (CFPB) or by the state attorneys general if necessary. Forty-five state attorneys general joined Maryland in this settlement. Consumers seeking information about the redress program can visit https://cashappcfpbsettlement.com/Home/Contact or call (888) 832-1301 (toll-free).
Attorney General Brown Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App - News - Office of the Attorney General of Maryland Skip to Content Accessibility Information Attorney General Brown Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App Published: 7/8/2026 Page Content FOR IMMEDIATE RELEASE Media Contacts [email protected] 410-576-7009 BALTIMORE, MD – Attorney General Anthony G. Brown today announced a $45 million multistate settlement with Block, Inc., the company behind the popular peer-to-peer payment app Cash App. The settlement resolves allegations that Block misled consumers about the security of Cash App, failed to protect users from fraud on the platform, and didn’t provide the fraud protection and resolution process that it promised and that was required by law. “Cash App failed to protect its users from fraud and then made it nearly impossible for victims to recover what they lost,” said Attorney General Brown. “This settlement strengthens the company’s fraud and dispute resolution practices: protections that Maryland consumers deserve when they trust a business with their money.” The Attorney General accused Block of telling Cash App users their money was safe, falsely implying that their app provided similar protections to a bank. At the same time, the Attorney General alleges Block knew that fraudulent activity on its platform was rising sharply and instead of warning users or strengthening protections, it doubled down on its marketing. For years, Block actively promoted direct deposits of paychecks and government benefits into Cash App. It made a particular push to reach unbanked and underbanked consumers – people who would often rely on Cash App as their primary financial account, and who were especially vulnerable to fraud. Block grew its user base without making sure it could support those users when problems arose. Block agreed to pay the coalition of state attorneys general $45 million. The settlement also provides for a $75 to $120 million restitution program for consumers who were the victims of fraud to seek redress. That program is to be run by the Consumer Financial Protection Bureau (CFPB) through a prior settlement with that agency but provides the attorneys general authority to administer the same redress program instead of the CFPB if necessary. Under the settlement, Block has also agreed to injunctive terms to address the security of its payment platform for consumers, including to: Maintain customer support that can resolve fraud complaints, account lockouts, and other problems. Offer live support 24 hours a day, with a human available by phone at least 13.5 hours a day and by live chat at least 18 hours a day. Stop making false or misleading claims about Cash App’s safety and how it protects users from fraud. Discontinue marketing practices known to increase fraud on the platform. Directly educate consumers about common types of fraud. Fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions. The state attorneys general that joined Attorney General Brown in today’s settlement are Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin. Consumers who wish to obtain more information about the redress program can go to: https://cashappcfpbsettlement.com/Home/Contact or call (888) 832-1301 (toll-free). ### More Social Media Channels We're available on the following additional channels. YouTube