On Wednesday July 8, 2026, a coalition of 46 states announced a settlement agreement with Cash App’s Parent Company, Block, Inc. (“Block”), for $45 million. Oregon and Texas spearheaded this endeavor against Block.
The states alleged that Block failed to protect Cash App users from fraud when using the platform despite promising to do so. The states alleged also that Block failed to provide the resolution process to the fraud claims that it promised and that was required to under law. The states alleged further that Block was aware of the rising fraudulent activity on Cash App and yet it did not warn users or strengthen protections against such activity.
As part of the settlement, Block has committed to maintaining customer support by:
- addressing fraud complaints;
- offering 24-hour phone support;
- investigating fraud claims and issuing reimbursements where required by law; and
- educating users on common methods of fraud.
The agreement also included a provision to ensure that Block pays at least $75 million as part of a January 2025 consent order that Block reached with the Consumer Financial Protection Bureau (“CFPB”). CFPB had ordered Block to pay $175 million as restitution for alleged fraud protection, customer service, and dispute resolution failures. With this latest settlement, Block must pay CFPB at least $75 million of the $175 million by 2030 otherwise it must make those payments to an executive committee of multiple state attorneys general.
The state attorneys general included this provision seemingly in response to a report that CFPB had canceled several settlements with Block under the Trump Administration. That report came from the Senate Banking Committee, which alleged that CFPB had reneged on 22 out of 23 settlements.
Also on July 8, 2026, Washington state announced a $20 million settlement with Block over alleged unemployment transfers during the Covid-19 pandemic. According to Washington state, it conducted an investigation which unearthed fraudulent transfers of up to $22 million in unemployment benefits from its Employment Security Department through Cash App accounts. The state alleged that criminals created these accounts with its citizens’ stolen information to file fraudulent benefits applications. Within that settlement, Block implemented various fraud-controls and mechanisms to thwart future fraudulent activity.
Both the Oregon and Washington state cases came out of each state’s respective state court.
These settlements may serve as precursors to the state attorneys general challenging CFPB decisions to dismiss consent orders that CFPB reaches with various entities such as Block. Thus, regardless of any CFPB decision to dismiss previously agreed to settlements, the various entities CFPB settles with may still be on the hook as seen with the January 2025 consent order with Block and CFPB.
