In a significant development for Cash App customers, you may be entitled to claim more than $2,500 each as part of a substantial $15 million class-action settlement related to data and security breaches at the popular mobile payment service.
If your account was accessed without your authorization or if you experienced fraudulent withdrawals or transfers, you are eligible to file a claim.
This applies to individuals who had or currently have an account between August 23, 2018, and August 20, 2024, according to the settlement website.
Background on Cash App $15 Million Settlement
Security Breaches and Lawsuit
This class-action lawsuit stems from a 2021 incident disclosed by the company in 2022, where a former employee downloaded reports of some U.S. users without permission.
Additionally, another breach was disclosed in 2023, where an unauthorized user accessed certain Cash App accounts using linked phone numbers.
Settlement Details
- Total Settlement Amount: $15 million
- Eligibility Period: Accounts from August 23, 2018, to August 20, 2024
- Potential Payout per Customer: Over $2,500
- Key Issues: Data and security breaches
Eligibility and Filing a Claim
Who Can File a Claim?
You are eligible to file a claim if:
- Your account was accessed without authorization.
- You experienced fraudulent withdrawals or transfers.
- You had or currently have a Cash App account within the specified period.
How to File a Claim
To file a claim, visit the designated settlement site: Cash App Security Settlement. You will need to:
- Enter a notice ID and confirmation code from a mailed or emailed notice, or
- File a claim even if you have not received such a notice.
Deadline for Filing
Customers have until November 18 to file a claim under the settlement. Ensure you submit your claim before the deadline to be eligible for compensation.
Potential Compensation
Reimbursement for Out-of-Pocket Expenses
Eligible claims for up to $2,500 to cover out-of-pocket losses include:
- Costs for credit monitoring or identity theft insurance
- Fees for requesting a credit report or initiating a credit freeze
- Expenses from canceling a payment card or obtaining a replacement card
- Costs related to closing a bank account and opening a new one
- Unrefunded overdraft fees
- Unrefunded late or missed payment fees or charges
Compensation for Lost Time
Customers can also claim up to three hours of lost time, compensated at a rate of $25 per hour, according to the settlement details.
Required Documentation
To qualify, you’ll need to provide third-party documentation to support your claim, as specified on the settlement website.
What Happens if the Settlement Fund Can’t Fully Pay Every Claim?
If there’s not enough money in the settlement fund to cover every approved claim in full, payments will be made on a reduced pro rata basis.
Other Options for Affected Customers
Opt-Out
If you want to exclude yourself from the settlement, you can choose to “opt out” before November 1. This allows you to sue or be part of another related lawsuit against the defendants in the future.
Object
You can also object to the settlement agreement by writing to the court before November 1 if you believe the settlement is unfair or inadequate.
Do Nothing
You can choose to do nothing. However, if you take no action, you will not receive any payments and may also give up the right to pursue another lawsuit with claims covered in the settlement.
Strengthening Data Security
As part of the settlement, both Cash App and its parent company, Block, have committed to taking measures to enhance their data security protocols. This move aims to provide better protection for their users and prevent future security issues.
Settlement Agreement
While Cash App and Block have denied any wrongdoing, they have agreed to a settlement amount of $15 million to resolve the litigation.
After covering attorneys’ fees and administration costs, the remaining funds will be distributed to impacted customers who submit eligible claims.
The $15 million Cash App settlement offers a significant opportunity for affected customers to recover losses incurred due to data and security breaches.
By filing a claim before the deadline and providing necessary documentation, you can maximize your potential compensation. Stay informed and ensure you gather all required documents to take full advantage of this settlement.
FAQs
Who is eligible for the Cash App settlement?
Anyone with a Cash App account between August 23, 2018, and August 20, 2024, who experienced unauthorized access or fraudulent transactions.
How can I file a claim?
Visit Cash App Security Settlement and enter your notice ID and confirmation code, or file a claim without receiving a notice.
What is the deadline for filing a claim?
November 18, 2024.
What expenses can I claim for reimbursement?
Out-of-pocket expenses such as credit monitoring costs, credit report fees, card replacement expenses, overdraft fees, and more.
What if there isn’t enough money to pay all claims?
Payments will be made on a reduced pro rata basis.
