Last week was the deadline to file a claim against Cash App to join others in a class-action lawsuit against the American company. Cash App is a digital wallet service which allows for American consumers to send, receive, or save money. Cash App has a current annual revenue of nearly $15 billion. The lawsuit stems from Cash App not preventing security breaches for consumers who use the app.
Class-action lawsuit could reward plaintiffs $2,500
The class-action lawsuit was filed in February against the billion-dollar company. Cash App users have alleged that Cash App Investing and its parent company, Block, were negligent in their handling of two significant data breaches. The first occurred in 2022, when a former Cash App Investing employee accessed user account data without authorization.
The second breach took place in 2023, when an unauthorized individual gained access to certain Cash App accounts by exploiting recycled phone numbers that had been linked to those accounts. Users claim that both breaches were mishandled, with inadequate responses from the companies to protect sensitive information and prevent further security lapses. This situation has raised concerns about the companies’ commitment to safeguarding user data and ensuring robust security measures.
Users have also accused Cash App Investing of not following through with robust security measures and control as well as ignoring and not responding to user’s concerns about fraudulent transactions occurring through the app. In August of this year, Cash App accepted a $15 million dollar settlement in compensation. As part of the settlement, Cash App and Block have agreed to strengthen data security. However, they continue to deny any wrongdoing or liability.
Who qualified to join the Cash App class-action lawsuit?
If your account was accessed without permission and authorization or if you had experienced fraudulent withdrawals or transfers between August 23, 2018 and August 20, 2024, you could have submitted a claim to join the class-action lawsuit. Your Cash App account must have been active in the given timeframe between between August 23, 2018 and August 20, 2024. Users who have claimed could receive up to $2,500 in settlement if they possess documentation which proves that they experienced out-of-pocket losses.
In a time of internet banking and investing, security breaches of users’ data is becoming an increasing concerns as hackers become more apt at accessing safeguarded user data. Cybercriminals are constantly developing more sophisticated methods to exploit vulnerabilities, putting sensitive financial information at risk. Strengthening security measures not only helps protect customers’ data but also maintains trust and credibility in the ever-evolving digital banking landscape.
Cash App assures stakeholders and users they are committed to preventing fraud
Cash App has assured stakeholders that, despite the ongoing investigation into the breach, its business operations and financial stability are anticipated to remain unaffected. In a statement, Cash App said: “At Cash App we value customer trust and are committed to the security of customers’ information. Upon discovery, we took steps to remediate this issue and launched an investigation with the help of a leading forensics firm. We know how these reports were accessed, and we have notified law enforcement. We are also contacting customers whose data was impacted. In addition, we continue to review and strengthen administrative and technical safeguards to protect information.”
Launched in 2023, Cash App has continued to be one of the most popular peer-to-peer payment platforms. In 2018, Cash App surpassed Venmo in total downloads. However, they have consistently been criticized for their weak security procedures with frequent scams being reported by users. Despite this, the app remains a popular digital wallet service and is frequently mentioned in cultural references, particularly among the hip-hop community. The app has approximately 200 mentions within hip-hop music lyrics
