The settlement directly addresses Block's deceptive marketing claims about Cash App's safety features and fraud protections, which are core financial promotion and consumer protection violations.
Mandatory inheritance: Advertising is a child of Consumer Protection, so Consumer Protection must be raised as the secondary tag.
Obligation
The settlement requires Block to cease deceptive marketing claims about Cash App's safety and fraud protections, and to directly educate consumers about fraud risks, which are core Disclosure obligations to provide clear, accurate information to retail customers.
The consent order mandates that Block investigate fraud claims and reimburse users for unauthorized transactions, which constitutes Customer Remediation through restitution payments to affected consumers.
Activity
The settlement directly addresses Block's failure to detect, prevent and investigate fraud on Cash App, including inadequate fraud protection, delayed fraud investigation, and failure to reimburse unauthorized transactions—core fraud prevention and detection obligations.
The settlement also requires Block to investigate fraud claims and reimburse users for unauthorized transactions, which relates to transaction monitoring and customer support obligations tied to identifying and responding to fraudulent activity.
Themes
The settlement centers on Block's failure to protect Cash App users from fraud, inadequate fraud investigation and reimbursement processes, and misleading safety claims—core Fraud Prevention obligations.
The deceptive marketing of safety features and false claims about fraud protections reflect Financial Promotions violations, as Block misrepresented the product's protective capabilities to consumers.
Functions
The settlement directly imposes obligations on customer support to maintain 24-hour availability with specified live phone and chat coverage minimums to handle fraud reports and customer service requests.
Fraud team functions are heavily implicated by the requirement to investigate fraud claims, reimburse unauthorized transactions, and implement controls to prevent fraud exploitation on the platform.
AG Nessel Announces $45 Million Multistate Settlement Over Deceptive Practices on Cash App
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TITLE: Michigan Attorney General Announces $45 Million Multistate Settlement Against Block Over Cash App Deceptive Practices
BODY:
On July 9, 2026, Michigan Attorney General Dana Nessel announced a $45 million multistate settlement with Block, Inc., the company operating the peer-to-peer payments application Cash App. The settlement resolves allegations that Block misled consumers about Cash App's safety, failed to protect users from fraud on the platform, and did not provide the fraud protection and resolution promised and required by law.
Block marketed Cash App as offering bank-like protections while knowingly allowing fraud to rise sharply on its platform. The company actively promoted direct deposits of paychecks and government benefits into Cash App, targeting unbanked and underbanked consumers who relied on the app as their primary financial account. Block's practices facilitated fraud through minimal identity verification during sign-up, absence of phone support for years (forcing users to contact fraudulent numbers), and continuation of the "Cash App Fridays" social media promotion despite knowing fraudsters exploited it. Users experienced prolonged account lockouts and received no recourse for unauthorized transactions. Michigan will receive $936,540 from the settlement.
Under the consent order, Block must maintain 24-hour customer support with live phone support at least 13.5 hours daily and live chat at least 18 hours daily. The company must cease making false or misleading claims about Cash App's safety, discontinue marketing practices known to increase fraud, directly educate consumers about fraud types, and fulfill legal obligations to investigate fraud claims and reimburse users for unauthorized transactions. Block has also committed to distributing between $75 million and $120 million to compensate consumers nationwide as part of a separate Consumer Financial Protection Bureau (CFPB) settlement. The consent order is effective immediately.
Attorney General: AG Nessel Announces $45 Million Multistate Settlement Over Deceptive Practices on Cash App Skip to main content Unsupported Browser Detected The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer. Supported Browsers Google Chrome Safari Microsoft Edge Firefox AG Nessel Announces $45 Million Multistate Settlement Over Deceptive Practices on Cash App July 09, 2026 LANSING – Michigan Attorney General Dana Nessel is announcing a $45 million multistate settlement with Block, Inc., the company behind the popular peer-to-peer payments app Cash App. The settlement resolves allegations that Block misled consumers about the safety of Cash App, failed to protect users from fraud on the platform, and didn't provide the fraud protection and resolution that it promised and that was required by law. “Customer safety should always be a top priority, and when a company misleads and fails to protect its users from fraud, it must be held accountable,” said Attorney General Nessel. “This settlement requires Cash App to maintain strong safeguards for consumers and commits the company to putting stolen money back into the pockets of Michigan residents. Throughout my time in office, we have worked with multistate coalitions to halt deceptive business practices, and we will continue to pursue corporations that try to put their bottom line over the people of Michigan.” Block told Cash App users their money was safe – implying that the app worked like a bank, with the same protections, which wasn't true. At the same time, Block knew fraud on its platform was rising sharply – and instead of warning users or strengthening protections, it doubled down on 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's policies didn't just fail to stop fraud – in several ways they made it easier: Block's sign-up process was designed to be fast and frictionless, with minimal identity verification. That made it easy for fraudsters to create accounts, not just legitimate users. For years, Cash App had no phone support. Users who needed help could only message through the app or on social media. People who got locked out – or just wanted to talk to someone – searched online for a phone number and often ended up calling fake 1-800 numbers run by scammers posing as Cash App. Those scammers would then take over accounts or drain users' other financial accounts. Block knew this was happening and didn't warn users or set up a real phone line until years later. Block ran a social media promotion called Cash App Fridays, encouraging users to publicly post their $cashtag – a unique Cash App identifier – for a chance to win a weekly prize. Fraudsters would then contact those users, tell them they'd won, and trick them into handing over their login information. Block knew about these scams and kept running the promotion anyway, for years. Block’s failure to provide adequate customer service and to fulfill its promise to protect users from fraud had real consequences for real people. Innocent users who experience automated account locks for suspicious transactions were frequently locked out of their accounts for weeks without a way to access their money. Victims of fraud through the app were often left with no recourse, because delays made it impossible to get stolen money back from scammers and because Block failed to investigate unauthorized transactions and failed to issue refunds when required by law. Under the settlement, the State of Michigan will receive $936,540. Block has also agreed to implement and maintain responsible practices to resolve these issues, 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 multistate settlement also reaffirms Block’s commitment to distribute between $75 million and $120 million to compensate consumers nationwide as part of a settlement with the Consumer Financial Protection Bureau (CFPB). Additional information regarding the CFPB’s settlement is available on the CFPB’s website and Cash App settlement website . A copy of the consent order submitted to the Court can be found here (PDF). ### MI Newswire Attorney General Press Release Consumer Protection Media Contact: Danny Wimmer Press Secretary agpress@michigan.gov Related News AG Nessel Sues HUD to Block New Changes to Funding Addressing Homelessness AG Nessel Secures Settlement with Deere & Company, Advancing Farmers’ Right to Repair AG Nessel Urges U.S. Trade Representative to Stop Hitting American Consumers, Businesses with Illegal Tariffs AG Nessel Reminds Residents to Report Extended Power Outages Following Severe Weather AG Nessel, Secretary Benson Respond to DOJ Primary Election Municipal Letters AG Nessel Joins Multistate Opposition to Postal Service’s Attempt to Undermine Voting Rights AG Nessel Warns Holiday Travelers of Toll, Ticket Scams Targeting Young Adults Court of Claims Denies Emergency Motion Challenging Michigan Fireworks Safety Advisory AG Nessel Sues Trump Administration Over Unlawful Implementation of Medicaid Work Requirements for Medically Frail Individuals Follow us