If you’ve been a Cash App user for the past 6 years, you may be eligible to claim financial compensation in dollars due to a legal settlement reached after a data breach case.
Cash App, along with its parent company Block, has proposed a $15 million settlement to resolve a class-action lawsuit following two security incidents that exposed the private information of millions of users, sparking complaints and accusations about the handling of data protection.
Causes of the class-action lawsuit
The first incident took place in December 2021, when a former Cash App employee, according to the company, accessed and downloaded reports containing confidential information of more than 8 million users. The compromised information included full names, brokerage account numbers, and in some cases, details about users’ holdings and investment portfolio values.
Detail: Cash App notified this data breach in April 2022, months after the event.
The second incident happened in 2023, when an “unauthorized user” managed to access several accounts using recycled phone numbers.
According to the class action lawsuit, this incident once again exposed the lack of robust security controls at Cash App and Block. At the same time, it was stated that the company failed to adequately act on complaints from users who reported fraudulent transactions and security breaches.
Class action lawsuit and settlement proposal
The consolidated class action lawsuit accuses Cash App and Block of negligence in protecting their users’ personal data, demanding compensation for those affected.
Although Cash App and Block have denied any wrongdoing, the $15 million settlement allows them to close this chapter without admitting legal liability, according to reports from media outlets such as NYT.
How to claim your dollars if you used Cash App
If you had an active Cash App account between August 23, 2018, and August 20, 2023, you may be entitled to file a claim.
You can request compensation of up to $2,500 to cover expenses arising from the violations, as well as compensation for up to three hours of lost time, valued at $25 per hour.
Additionally, those who have suffered financial losses and have not yet received a refund may also file an additional claim.
To do so, you need to go to the settlement website. The deadline to submit your claim is November 19 at 2 a.m. Eastern Time.
Note: It is important to meet this deadline, as the final court hearing in the case, which will determine the conclusion of the settlement, is scheduled for December 16.