How Cash App Users Can Claim Up to $2,500

Posted On August 8, 2024

In a recent turn of events, the popular payment platform Cash App has agreed to a substantial settlement of $15 million following a series of data breaches that have potentially compromised the security of millions of users. This settlement, pending approval by the District Court for the Northern District of California, could result in financial compensation for those affected by these security lapses.

The Timeline of Data Breaches

The initial breach was disclosed in 2022 when Cash App revealed that a former employee had accessed customer data without authorization. The incident raised significant concerns about the company’s security practices, particularly regarding the safeguarding of sensitive user information. Just a year later, another breach occurred when unauthorized individuals accessed accounts by exploiting recycled phone numbers, further exacerbating user concerns about the platform’s security measures.

The Settlement Agreement

In light of these breaches, Cash App and its parent company, Block Inc., have opted to settle the class action lawsuit filed against them. While the companies have denied any wrongdoing, they have agreed to a $15 million settlement to avoid protracted litigation. If the court approves the settlement, the funds will be allocated to cover attorneys’ fees, a service payment for the class representative, settlement administration costs, and most importantly, compensation for affected users.

Who is Eligible for Compensation?

If you are a Cash App or Cash App Investing user and believe your account was accessed without authorization, you may be eligible to file a claim. This includes users who experienced unauthorized or fraudulent withdrawals or transfers between August 23, 2018, and August 20, 2024. The settlement allows affected users to claim up to $2,500 for out-of-pocket expenses, which must be substantiated by third-party data. These expenses can include costs related to credit monitoring, identity theft insurance, credit report requests, credit freezes, opening new bank accounts, obtaining replacement credit cards, or losses from unrefunded overdraft or late payment fees.

In addition to out-of-pocket expenses, affected users can claim up to three hours of lost time, compensated at $25 per hour. This is intended to cover the time spent dealing with the aftermath of the data breaches, such as securing accounts, resolving fraudulent transactions, or interacting with customer support.

Step-by-Step Process to File a Claim

1. Determine Eligibility
   • Eligibility Period: Users must have been affected by unauthorized access or fraudulent transactions between August 23, 2018, and August 20, 2024.
   • Affected Users: This includes those whose personal information was accessed or who experienced unauthorized withdrawals or transfers.
2. Gather Required Documentation
   • Proof of Out-of-Pocket Expenses: Users should collect documentation showing any costs incurred due to the breach. This can include:
     • Receipts for credit monitoring services or identity theft insurance.
     • Bank statements showing fees related to unauthorized transactions.
     • Documentation for any credit report requests, credit freezes, or new bank accounts opened due to the breach.
   • Lost Time Documentation: If claiming compensation for time lost dealing with the breach, users may need to provide a brief explanation of activities such as contacting customer service, securing accounts, or handling fraudulent transactions.
3. Visit the Claims Website
   • Access to Official Portal: Users will need to go to the official settlement claims website to start their claim submission. (Include the URL if available or advise users to search for the official Cash App settlement site).
4. Fill Out the Claim Form
   • Required Information: The form will ask for:
     • Personal details like name, address, and Cash App account information.
     • A description of how the breach affected them, including unauthorized transactions or data exposure.
   • Upload Documents: Users must upload any gathered documentation to support their claim.
5. Submit Your Claim
   • Confirmation: After filling out the form, users should review the information for accuracy and submit the claim. They should receive a confirmation email or reference number for their submission.
6. Wait for Review
   • Review Process: Claims will be reviewed by the settlement administrator. The review process may take several weeks to months, depending on the number of claims submitted.
   • Notification: Users will be notified via email if their claim requires additional information or if it has been approved.
7. Receive Compensation
   • Compensation Types:
     • Out-of-Pocket Expenses: Eligible users can receive up to $2,500 for documented expenses.
     • Lost Time Compensation: Users can receive up to $75 for three hours of lost time (at $25 per hour).
   • Payment Method: Compensation may be issued via check, direct deposit, or credit to their Cash App account, depending on the user’s preference and the terms of the settlement.

CLICK HERE TO ACCESS THE SETTLEMENT WEBSITE

The Impact of the Breach

The repercussions of the breaches have been far-reaching, with the personal information of approximately 8.2 million users reportedly exposed in the 2021 incident alone. The class action lawsuit against Cash App and Block Inc. alleges that the companies failed to implement adequate security measures, leaving user data vulnerable to unauthorized access and misuse.

Despite the settlement, Cash App and Block have maintained their stance that they were not negligent in their security practices. However, the significant settlement amount suggests that the company is taking the issue seriously and is committed to resolving the concerns of its users.

Conclusion

The $15 million settlement serves as a critical reminder of the importance of robust security measures in the digital age. If you are a Cash App or Cash App Investing user who believes your account was compromised during the specified period, it is essential to explore your eligibility for compensation. With the potential to receive up to $2,500 for out-of-pocket losses and additional compensation for lost time, this settlement offers a tangible remedy for those impacted by the data breaches.

As digital platforms continue to play an integral role in our financial lives, the need for vigilant security practices cannot be overstated. The outcome of this settlement will likely set a precedent for how similar cases are handled in the future, reinforcing the importance of user trust and data protection.