The Consumer Financial Protection Bureau issued an order against Block, the operator of Cash App, requiring the company to provide up to USD 120 million in refunds and other redress to affected consumers, pay a USD 55 million penalty into the CFPB’s victims relief fund, and remediate failures in fraud prevention, customer service, and handling disputes over unauthorized transactions. The CFPB found that weak security protocols left Cash App users at risk and that the company failed to meet legal obligations to investigate and resolve disputes about unauthorized transfers, including closing cases without completing legally required investigations. The order describes practices that shifted responsibility to users and linked banks, including terms that led consumers to believe their bank was responsible for disputes and directing consumers to ask their bank to attempt reversals that Block would then deny. It also cites ineffective customer support, including a Cash Card telephone number that for years did not connect consumers to support, leaving users to rely on in-app or mail channels that generated delayed or inaccurate responses and increasing exposure to impersonation scams. Required remediation includes establishing 24-hour live-person customer service, fully investigating unauthorized transactions, and providing timely refunds where appropriate; the redress program has a USD 75 million minimum payment and consumers do not need to take action at this time. The order is limited to consumer financial protection laws within the CFPB’s remit, and the release notes that state regulators separately ordered Block to pay USD 80 million for Bank Secrecy Act and anti-money laundering law violations.

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