Raritan NJ
7-09-2026 6:34pm

AG Davenport Announces Bipartisan Settlement With Tech Company Block, Inc., for Allegedly Misleading Consumers and Failing to Protect Them From Fraud


Complaint | Consent Judgment

TRENTON – Attorney General Jennifer Davenport and the Division of Consumer Affairs (DCA) announced today a $45 million bipartisan multistate settlement with Block, Inc., the technology company behind the peer-to-peer payments app Cash App. The settlement, joined by 46 states, resolves allegations that Block misled consumers about the safety of Cash App, failed to protect users from fraud on the nonbank platform, and didn't provide the fraud protection and resolution that it promised, as required by law.

“When New Jerseyans trusted Cash App with their hard-earned money, Cash App exposed them to scammers and put their savings at risk. Tech billionaires shouldn’t be able to turn a quick profit by misleading hardworking New Jerseyans and failing to protect them from fraudsters and scammers,” said Attorney General Davenport. “Our office will continue to protect your hard-earned money and hold tech companies accountable when they expose you to fraud and scams on their platforms.”

“This agreement outlines important steps that Block must take to prevent financial app scams from taking place,” said DCA Acting Director Jeremy E. Hollander. “These actions are as equally important as any funds New Jersey and its residents receive.”

New Jersey is set to receive $892,753.12 from the multistate settlement. The 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 Finance Protection Bureau (CFPB). Additional information regarding the CFPB’s settlement is available at: https://www.consumerfinance.gov/enforcement/actions/block-inc/ and https://www.cashappcfpbsettlement.com/.

Block told Cash App users their money was safe, implying that the app worked like a bank, with the same protections, which was not true. At the same time, Block knew fraud on its platform was rising sharply, and it failed to adequately warn users or strengthen protections on its platform.

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 made it easier for fraudsters to prey on Cash App users in several ways:

  • 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.

Block’s failure to provide adequate customer service and to fulfill its promise to protect users from fraud had real consequences for real people. 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, Block has 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; and
  • Fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.

In addition to Attorney General Davenport, this settlement was joined by the attorneys general of Oregon and Texas, which led the investigation, as well as Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

Deputy Attorneys General Ethan B. Rubin and Mehnaz Rahim, under the supervision of Data Privacy & Cybersecurity Section Chief Thomas Huynh and Assistant Attorney General Kashif T. Chand, within the Affirmative Civil Enforcement Practice Group of the Division of Law, represent the State in the matter. Investigator Aziza Salikhova of the Office of Consumer Protection within the Division of Consumer Affairs conducted the investigation.
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