Thousands of Cash App users may be eligible for compensation following a class action lawsuit that alleges the popular payment platform failed to implement adequate security measures, exposing personal information to cybercriminals. The lawsuit claims that Cash App and its parent company, Block Inc., neglected to protect users from fraud and unauthorized account access, leading to financial losses and identity theft.
As a result, Cash App has agreed to a $15 million settlement to resolve claims related to these security breaches. The final court hearing is scheduled for January 13, 2025, marking a critical step in the settlement process.
Background on the Lawsuit
The lawsuit stems from two major security breaches that compromised user data:
- In 2022, a former employee accessed sensitive customer information without authorization.
- In 2023, hackers exploited linked phone numbers to take over user accounts, resulting in unauthorized withdrawals and fraudulent transactions.
These incidents, along with previous security concerns dating back to 2018, triggered a legal battle over Cash App’s responsibility in protecting user data. While Block Inc. denies any wrongdoing, the company opted to settle to avoid prolonged litigation.
Also Read – Apple Agrees to $95M Settlement in Siri Privacy Lawsuit
Who Is Eligible for Compensation?
Individuals who held a Cash App account and experienced unauthorized transactions between August 23, 2018, and August 20, 2024, may qualify for a payout. Eligible claims include:
- Reimbursement of up to $2,500 for financial losses due to unauthorized withdrawals or fraudulent activity.
- Compensation for expenses related to identity theft protection, credit monitoring, or security-related costs.
- A payout for lost time, with up to $65 available for time spent resolving security issues caused by the breaches.
To receive compensation, claimants were required to submit documentation proving financial losses or fraudulent activity. The deadline to file a claim was November 18, 2024.
When Will Payments Be Issued?
If the court approves the settlement on January 13, 2025, and there are no delays due to appeals, payouts could begin later in 2025 or early 2026. Eligible users will receive payments directly to their bank accounts on scheduled dates.
To stay updated on the latest payout information, claimants should monitor the official settlement website: cashappsecuritysettlement.com.
Final Thoughts: Don’t Miss Out
For Cash App users impacted by these security failures, this settlement offers an opportunity to recover financial losses and protect against future risks. If you submitted a valid claim, keep an eye on the settlement updates to ensure you receive your compensation.
Also Read – Are You Eligible for Walgreens’ $100M Settlement? Find Out Now
The Cash App case serves as a reminder of the importance of data security in digital transactions. Whether you’ve faced financial losses or simply want to ensure better protections in the future, this lawsuit highlights the need for stronger security measures in mobile payment platforms.
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