A broad settlement totaling $45 million will resolve allegations against Block over Cash App fraud protections and customer service failures, including claims that Cash App misled users about bank-like protections and did not prevent fraud.

New York Attorney General Letitia James, leading a coalition of 46 states, argues that Cash App exposed users to rampant fraud and that the settlement will mandate stronger blocking practices to safeguard consumer funds going forward.

The coalition alleged Block misrepresented Cash App’s protections and failed to shield users from scams, with the enforcement action spanning 46 states.

Regulators’ push comes amid questions about how fintech enforcement interacts with federal actions across administrations and ongoing debates over consumer protections in digital payments.

Investigations found Cash App allowed account creation without a Social Security number or date of birth and put no limits on accounts per user, practices that allegedly facilitated fraud networks and limited chargebacks.

States claimed Cash App’s lax identity requirements and unlimited accounts enabled abuse by scammers.

Reuters reported on the settlement, and Block did not immediately comment.

Investigators said Block advertised bank-like protections without a consistent fraud-detection system and without a functioning fraud hotline, undermining user trust.

Users faced prolonged account lockouts and difficulties recovering stolen funds; investigations faulted Block for failing to investigate or reimburse unauthorized transactions as required by law.

A Cash App Fridays promotion encouraging public sharing of unique identifiers reportedly let fraudsters harvest login data, and Block was aware of these scams yet continued the promotion.

The settlement requires Block to implement a comprehensive compliance program, stop misleading safety claims, and provide robust live support and timely responses to unauthorized-transaction complaints.

Specifically, Block must offer 24/7 live customer support, phone access for at least 13.5 hours daily, live chat for extended hours, educate consumers about fraud, and reimburse victims after fraud investigations.