Cash App fined $255 million in consecutive settlements

Cash App closes the week with $255 million in multiple settlements around its consumer protections.

Block, the company that owns Cash App, agreed Wednesday to pay $80 million to the 48 states that fined the company for violating laws intended to prevent illicit activity on the platform.

“State regulators found that Block failed to comply with certain requirements, creating the possibility that its services could be used to support money laundering, terrorist financing or other illegal activities,” a statement said Conference of State Bank Supervisors press release.

Separately, the federal Consumer Financial Protection Bureau reached a settlement with Block on Thursday, in which the company agreed to pay $120 million to Cash App customers and an additional $55 million to the CFPB. According to the bureau, Cash App’s weak security measures put consumers at risk and make it difficult for users to get help after falling victim to fraud on the platform. Cash App is also accused of misleading consumers into believing that their bank, not Cash App, was responsible for handling disputes and that Cash App did not provide “meaningful and effective” customer service, which ” left the network vulnerable to criminals defrauding users.” »

How to regulate peer-to-peer money transfer apps like Cash App is an ongoing battle. This week, NetChoice and TechNet filed a lawsuit challenging the CFPB’s handling of platforms like banks, calling it an “illegal power grab.” Google filed a similar complaint in December.