Cash App has just confirmed details regarding how eligible users can claim their share of $12.5 million. In today’s digital age, companies need to take extra precautions to ensure that their clients’ data remains secure and is protected from fraud and unauthorized third-party access. When sensitive client data is leaked, it poses significant repercussions such as identity theft and financial fraud. When this occurs, companies may face large litigations and other legal repercussions for not securing client data.
Cash App and other entities take extreme precautions to protect user data
Cash App is a mobile payment service that allows users to send and receive money instantly, buy and sell Bitcoin and stocks, and get a customizable debit card. Financial entities such as these have access to sensitive user data and information, meaning that they have an obligation to take extreme precautions to ensure that this data does not receive unauthorized third-party access.
Additionally, these large entities also have an obligation to disclose to their users how their data will be used. When companies are not transparent regarding what users’ data is being utilized for, they risk violating privacy laws, whereby users are not adequately notified regarding how their information will be used outside of the services they signed up for.
Claim your share of $12.5 million from Cash App
Financial entities such as Cash App generally have access to user data such as transaction history and personal financial information. These entities require some of the most significant precautions to be undertaken to ensure that this data is not exposed, and financial fraud subsequently occurs. However, these entities must also ensure that they maintain a trusting relationship with their users by being upfront regarding how else they intend to use user data outside of managing relevant financial services.
Recently, Cash App’s parent company Block, Inc., has agreed to settle a $12.5 million settlement with users over alleged claims that the company violated Washington’s Commercial Electronic Mail Act and Consumer Protection Act by assisting Cash App users with sending text messages to Washington residents through the platform’s “Invite Friends” program.
The Cash App Security Settlement pertains to the following agreement:
- Settlement payouts are reserved for individuals who received an unsolicited referral text from Cash App between Nov. 14, 2019, and Aug. 7, 2025. Additionally, you must reside in Washington.
- Eligible claims will receive a payout of between $88 and $147.
- In order to receive your payout, you must file an eligible claim before October 27, 2025.
This is not the first class action lawsuit Cash App has faced this year. The company recently settled a $15 million class action litigation over a security breach that users experienced in 2022.
The rise in cybercrime and violations of privacy laws
Both settlements Cash App has faced this year highlight that the world is continuing to see a rise in financial fraud as well as violations pertaining to privacy laws. In a digital age, the private sphere is becoming increasingly blurred with the public, with persistent access to populations through these technologies and services forcing individuals and stakeholders to reconsider how we define privacy, and who is allowed to have access to you.
In the same vein, a recent landmark civil regulatory action case against Amazon.com, Inc,. was reached by the Federal Trade Commission (FTC) over allegations that Amazon Prime members had their consumer protection laws violated. Alleged claims state that Amazon enrolled its users into its Amazon Prime subscription service without receiving user consent. The company agreed to settle for $1.5 billion, providing consumer relief to over 35 million subscribers. The company also faces a civil penalty fine worth $1 billion. Payment dates are yet to be confirmed for affected users.
Disclaimer: Our coverage of events affecting companies is purely informative and descriptive. Under no circumstances does it seek to promote an opinion or create a trend, nor can it be taken as investment advice or a recommendation of any kind.
