July 8, 2026
(Juneau, AK) – Today, Acting Attorney General Mills announced 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. In short, the company failed to help people when things went wrong.
“People use apps like Cash App every day to send money, and they need to know their money is safe,” said Acting Alaska Attorney General Cori Mills. “Unfortunately, that was not the case with Cash App. This settlement makes sure the company does the right thing for everyone who uses Cash App. It means people who got hurt will have the opportunity to get some money back, and new rules will make things safer for everyone in the future.”
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 will pay Alaska $292,995.55 as part of this settlement agreement.
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, 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.
- 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 CFPB. Additional information regarding the CFPB’s settlement is available at: Block, Inc. | Consumer Financial Protection Bureau.
About the Investigation
Oregon and Texas led the investigation, securing relief for all 46 participating states.
The State encourages any person who believes they were subjected to unfair or deceptive business practices to submit a complaint to the Consumer Protection Unit.
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Department Media Contact: Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.
Due to resource constraints, we no longer post links to referenced records. Records filed in a federal court are readily available at Docket Search or PACER, and records filed in a State of Alaska court are readily available from the Alaska Court System (Trial Courts - Alaska Court System and Search for an Appellate Case). Contact Sam Curtis to request a referenced record that is not readily available from a court or on the internet, or contact law.recordsrequest@alaska.gov to submit a formal Alaska Public Records Act request.
