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Jul 10, 2026
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Washington
News Releases | Washington State
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2076 charsWashington Attorney General Announces Two Settlements with Block Inc. Over Cash App Fraud and Consumer Protection Violations
On July 8, 2026, Washington's Attorney General Nick Brown announced two separate settlements with Block Inc., the company behind the peer-to-peer payments application Cash App. The first settlement, filed in King County Superior Court, resolves the Attorney General's Office (AGO) investigation into how Block handled fraudulently transferred unemployment deposits into Cash App accounts from Washington's Employment Security Department during the COVID-19 pandemic. Block agreed to pay $20 million to settle this matter.
The second settlement, reached as part of a multistate coalition led by the attorneys general of Oregon and Texas, addresses allegations that Block misled consumers about Cash App's safety, failed to protect users from fraud, and did not meet its own promises to consumers and obligations under law. Washington receives $1.8 million as part of a $45 million multistate settlement.
The AGO's investigation into pandemic-era unemployment benefits fraud began in August 2020, following Washington's loss of more than $648 million from identity theft and unemployment benefits fraud. Between March and August 2020, at least $22 million in unemployment benefits from the Employment Security Department were fraudulently transferred through Cash App accounts. The AGO alleged Block's actions violated Washington's Consumer Protection Act by failing to maintain adequate anti-fraud controls.
The multistate settlement requires Block to implement responsible practices including maintaining 24-hour customer support with live phone support at least 13.5 hours daily and live chat at least 18 hours daily; discontinuing false or misleading claims about Cash App's safety; ceasing marketing practices known to increase fraud; educating consumers about fraud types; and fulfilling legal obligations to investigate fraud claims and reimburse users for unauthorized transactions. Block also committed to distribute between $75 million and $120 million to compensate consumers nationwide as part of a separate Consumer Financial Protection Bureau (CFPB) settlement.
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982 charsWashington Attorney General Announces $20m Settlement with Block Inc. Over Fraud and Consumer Protection Violations
On July 8, 2026, Washington's Attorney General announced a settlement with Block Inc., the company behind the peer-to-peer payments application Cash App. The first settlement, filed in King County Superior Court, resolves the Attorney General's Office (AGO) investigation into how Block handled fraudulently transferred unemployment deposits into Cash App accounts from Washington's Employment Security Department during the COVID-19 pandemic. Block agreed to pay $20m to settle this matter.
The AGO's investigation into pandemic-era unemployment benefits fraud began in August 2020, following Washington's loss of more than $648m from identity theft and unemployment benefits fraud. Between March and August 2020, at least $22m in unemployment benefits from the Employment Security Department were fraudulently transferred through Cash App accounts. The AGO alleged Block's actions violated Washington's Consumer Protection Act by failing to maintain adequate anti-fraud controls.