4 days left – Cash App Announces New Payment for Millions of Customers – More than $2,000 Direct Deposit from this settlement
Cash App Announces New Payment for Millions of Customers
The class action after persistent data breaches has concluded: Cash App, one of the most used mobile payment services in the United States, will pay each affected user up to $2,500.
In a digital era where cold, hard cash is slowly disappearing, financial services apps such as Cash App, Venmo or PayPal are essential to operate in our daily lives. Cash App is a very versatile and complete app… Apart from offering peer-to-peer money transfer, it has a bitcoin and stock exchange, bitcoin on-chain and lightning wallet. Like other traditional financial institutions, it also offers a personalised debit card, savings accounts, and even short term lending. With such a wide variety of services –and ease of use!–, we may have had blind faith in their cybersecurity protocols.
The first data breach occurred in December 2021. It was later traced back to a former Cash App employee who, after leaving the company, downloaded certain customer reports containing without authorization. This breach exposed the sensitive personal information of 8.2 million Cash App users. Taking into account that Cash App reported 57 million users in 2024, it means at least 14% of their clients were affected by that data leak alone.
Following this, another breach was discovered where unauthorized access led to fraudulent transactions in user accounts. Both incidents resulted in a class action lawsuit that now obligates Cash App to compensate affected clients.
Although the first data breach in December 2021 is known to have been directly caused by a former Cash App employee, there is still no explanation to the following security breaches were unauthorised users were able to access clients accounts. These cybersecurity incidents occurred over several years.
The personal information leaked during these incidents was made available online, compromising details that could be exploited for malicious purposes. The breaches occurred between August 23, 2018, and August 20, 2024. This timeline is critical for determining eligibility: if you reported fraudulent use of your Cash App account within those dates, you should be able to file a claim.
A significant class action settlement has been reached following those two data breaches and issues around unauthorized account access in Cash App. As part of this $15 million settlement, users who were impacted by these security vulnerabilities are eligible to receive compensation of up to $2,500.
Users eligible to file a claim include anyone who suspects their Cash App or Cash App Investing account was accessed without authorization, experienced fraudulent transactions, or believes their personal data was compromised during the specified period. To file a claim, users must submit documentation demonstrating that they were impacted.
Some of the documents that can be used as evidence include: Communications with Cash App reporting the breach, police reports; correspondence with consumer protection entities, such as the Federal Trade Commission; and reports to financial institutions or government agencies.
Remember: all claims must be filed by November 18, 2024, through the settlement’s official website.
If a user prefers not to participate in the settlement and wishes to retain the right to take independent legal action against Cash App in the future, they can file an exclusion claim. This type of claim allows individuals to opt out of the settlement, thereby reserving the option to pursue further legal recourse. The deadline to file an exclusion claim or to object to the settlement is November 1, 2024.
Despite the lawsuit alleging negligent security practices and a lack of proper protocols by Cash App and its parent company Block (formerly known as Square), both companies have denied any wrongdoing in these incidents. However, the settlement aims to address the breaches that compromised sensitive personal information and led to fraudulent activities within user accounts.
© 2024 El Adelantado de Segovia
© 2024 El Adelantado de Segovia
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