A class-action lawsuit resulted in a $15 million settlement for users affected by the Cash App data breach that occurred in late 2021. The breach led to confidential customer data being compromised, prompting legal action against Block, Inc., the parent company of Cash App. While the company has not admitted any wrongdoing, it agreed to the settlement to resolve the claims.
Who Is Eligible for Compensation?
Under the settlement terms, current and former Cash App users whose personal information was compromised between August 23, 2018, and August 20, 2024, may be eligible for compensation. Affected users include those whose accounts were accessed without their knowledge or those who suffered fraudulent transactions.
Key Details:
| Article | $15M Cash App data breach settlement 2025 |
| Category | Finance |
| Settlement Amount | $15M |
| Maximum Payout per Claimant | Maximum Payout per Claimant |
| Official Website | www.cashappsecuritysettlement.com |
Causes of the Data Breach
The class-action lawsuit alleges that Cash App failed to protect user data in two separate incidents:
- 2022 Breach: An employee accessed Cash App Investing accounts without authorization.
- 2023 Breach: A third party exploited recycled phone numbers to gain access to accounts.
Compensation and Payout Details
Eligible class members can receive reimbursement for losses related to the breaches, including:
- Credit charges and bank fees
- Travel expenses
- Up to three hours of lost time ($25 per hour)
- Additional compensation for fraudulent transactions (with proper documentation)
How to File a Claim
If you believe you are eligible, follow these steps:
- Visit the official settlement website.
- Submit the required documentation proving your losses.
- Ensure your claim is filed before the October 18, 2024 deadline.
- If you wish to opt out and retain legal rights to sue, file an exclusion request by November 1, 2024.
Preventative Measures for Users
Given the rise in security breaches, users should take proactive steps to protect their information:
- Monitor Accounts Regularly: Review bank and Cash App statements for unusual activity.
- Use Strong Passwords: Create complex passwords with a mix of letters, numbers, and symbols.
- Enable Two-Factor Authentication (2FA): Adds an extra security layer by requiring a second verification method.
- Beware of Phishing Scams: Avoid clicking on suspicious emails or messages requesting personal data.
- Stay Informed on Data Privacy: Understand security best practices and stay updated on digital safety trends.
Corporate Responsibility & Security Improvements
The settlement underscores the importance of corporate responsibility in data security. Companies like Block, Inc. can enhance security by:
- Investing in robust cybersecurity measures
- Conducting regular security audits
- Training employees to recognize and prevent cyber threats
- Communicating transparently with users about security incidents
Final Thoughts
The Cash App data breach settlement is a crucial reminder of the growing need for stringent data security. As digital transactions continue to rise, both consumers and businesses must remain vigilant in safeguarding sensitive information.
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This case also sets a precedent for how companies handle data breaches and user compensation in the future. Ensuring cybersecurity is not just a corporate responsibility—it’s an essential part of maintaining trust in the digital economy.
PV Martinez holds an MBA in Finance from the University of Michigan. When not analyzing numbers, PV enjoys playing football and spending time singing his favorite tunes.
