Cash App and its parent company Block have agreed to a $15 million settlement. This is due to data breaches that affected millions of customers. The goal is to help those who lost money due to unauthorized access to their accounts, offering up to $2,500 in claims.
The breaches happened in two ways. First, a former employee downloaded customer data in December 2021. Then, in 2023, there was unauthorized access to accounts using recycled phone numbers. If you used Cash App from August 23, 2018, to August 20, 2024, you might get a part of the settlement.
Key Takeaways
- Cash App and Block settled a $15 million class action lawsuit related to data breaches.
- Eligible users can claim up to $2,500 in compensation for the data breach incidents.
- The settlement covers the period from August 23, 2018, to August 20, 2024.
- Customers who experienced unauthorized access or losses due to the breaches can file a claim.
- Deadlines and documentation requirements apply to submit a valid claim.
Understanding the $15 Million Cash App Settlement
The $15 million settlement is about a lawsuit over a data security breach. This breach affected the digital wallet vulnerability and personal info of Cash App users. The goal is to help those affected and make the Cash App platform safer.
Overview of the Data Security Breach
In December 2021, Cash App faced a “data security event”. This event might have exposed users’ personal and financial data. The breach happened from August 2018 to August 2024, and the settlement covers this time.
Settlement Amount and Timeline
The $15 million will go to those affected by the breach. The final approval for the settlement is set for December 16, 2024. There’s a chance it could be extended to January 13, 2025.
Parent Company Block’s Response
Block, Inc., Cash App’s parent, doesn’t admit to any wrongdoing. But they do acknowledge the “data security event” in December 2021. The settlement aims to fix the issue and boost data encryption standards in the Cash App.
| Key Settlement Details | Amounts and Timelines |
|---|---|
| Settlement Amount | $15 million |
| Maximum Claim per User | Up to $2,500 |
| Claim Submission Deadline | November 18, 2024 |
| Final Approval Hearing | December 16, 2024 (with potential extension to January 13, 2025) |
Key Details of the Data Security Incidents
The Cash App data security settlement deals with two major incidents. These incidents affected millions of customers’ personal information. In December 2021, a former Cash App employee downloaded reports with customer details. This included names, account numbers, and investment activity, impacting 8.2 million users.
In September 2023, unauthorized access happened through recycled phone numbers. This was linked to Cash App accounts.
These breaches exposed sensitive data like names, account numbers, and transaction histories. This put users at risk of blockchain transaction security threats, identity theft, and financial fraud. As a result, Cash App’s parent company, Block, Inc., agreed to a $15 million settlement. This is to compensate affected customers and improve biometric authentication measures and regulatory compliance practices.
| Incident | Details | Impact |
|---|---|---|
| Former Employee Data Breach | A former employee downloaded customer reports containing sensitive information in December 2021. | 8.2 million Cash App customers were affected, with their names, account numbers, and investment activity exposed. |
| Unauthorized Account Access | Recycled phone numbers were used to gain unauthorized access to Cash App accounts in September 2023. | Customers’ personal and financial information was potentially compromised, putting them at risk of identity theft and financial fraud. |
The Cash App data security settlement aims to help users who lost money. It also ensures the company will protect customer information better in the future.
Who Qualifies for the Settlement Claims
If you used Cash App or Cash App Investing, you might get money from a $15 million settlement. You qualify if your account was hacked or if you had unauthorized transactions from August 23, 2018, to August 20, 2024.
Eligibility Requirements
To get the settlement, you need to meet certain conditions:
- Be a current or former Cash App or Cash App Investing user from August 23, 2018, to August 20, 2024.
- Have had your account or personal info hacked, or experienced unauthorized transactions during this time.
- Not have been paid back by Block Inc., Cash App Investing, or someone else for your losses.
Documentation Needed
To back up your claim, you’ll need to show proof of any losses you faced, like:
- Costs for credit monitoring or identity theft insurance.
- Unauthorized withdrawals or other financial losses.
- Time spent dealing with the data breach, at a rate of $25 per hour.
The deadline to file your claim is 11 p.m. PT on November 18, 2024. You can submit your claim at cashappsecuritysettlement.com/submit-claim.
Maximum Compensation Amount of $2,500
As part of a $15 million class-action settlement, Cash App Investing and Block Inc. are offering up to $2,500 to eligible customers. This amount is to cover costs like credit monitoring, identity theft protection, and unauthorized account withdrawals.
The actual payment might be less than $2,500, as it depends on how many claims are made. The money will be split fairly among all who qualify, with payouts possibly reduced if the total claims exceed $15 million.
There’s also compensation for lost time, up to $25 per hour for 3 hours. If you spent time fixing issues caused by the security breaches, you might get this extra money.
The last day to file a claim is November 18, 2024. The final hearing is on December 16, 2024. If you’re eligible, make sure to check the details and requirements to get the most compensation.
Types of Losses Covered Under the Settlement
The $15 million class-action settlement against Cash App’s parent company, Block, covers various financial losses. It helps those who suffered due to data security incidents. Claimants can get money back for three main types of losses:
Out-of-Pocket Expenses
Cash App users who paid for things because of data breaches can get help. This includes costs for services like credit monitoring and identity theft insurance. It also covers fees for credit reports, replacing cards, and more.
Lost Time Compensation
People can get paid for up to three hours of time lost due to the breaches. They get $25 an hour for this.
Transaction-Based Losses
Those who lost money to fraud or unauthorized access can get their money back. They need to provide proof, like a police report.
If more claims are made than the $15 million fund, everyone gets a share. This means claimants get a part of the money available.
The deadline to file claims is November 18, 2024. It’s crucial to check the settlement website and send all needed documents. This ensures your claim is processed correctly.
How to Submit Your Cash App Data Security Settlement Claim
If you were hit by the Cash App data breach, you might get money from a $15 million class-action settlement. To get your share, go to the settlement website and fill out the form with your info and documents.
Start by finding your notice ID and confirmation code if you got a personal notice. If not, you can still claim by telling about the unauthorized access or transactions you faced. You’ll need to provide proof too.
The online form will help you. It will ask for details like:
- Information about the unauthorized access or transactions you experienced
- Proof, like bank statements or receipts
- Your contact info and how you want to get paid
The most you can get is $2,500 per eligible user. This covers expenses, lost time, and unauthorized transactions. Make sure to submit your claim by November 18, 2024, to qualify.
If you have questions or need help, call the Settlement Administrator at 1-866-615-9740.
This settlement came from a class-action lawsuit over Cash App’s data breach. By filing your claim, you help hold the company responsible. You might also get money for any harm to your personal info or account.
Required Documentation for Filing a Claim
If you were hit by the recent Cash App data breaches, you might get money from the $15 million settlement. To get your claim approved, you need to show proof of your losses. This includes things like receipts, bank statements, and proof of unauthorized access or fraud from August 23, 2018, to August 20, 2024.
Proof of Loss Requirements
The settlement helps with many types of losses, like money spent, time lost, and money lost in transactions. For money spent, you’ll need to show receipts for things like credit monitoring or legal fees. If you had money stolen, you’ll need to show bank statements or police reports.
Supporting Evidence Guidelines
You might also need to add extra documents to your claim. This could be emails with Cash App, reports to the government or Better Business Bureau, and any other proof of your loss. The more detailed your claim, the more likely you are to get up to $2,500.
Remember, all your documents must be about the time between August 23, 2018, and August 20, 2024. You have until November 18, 2024, to file your claim. By providing the right evidence, you can protect your consumer privacy and get fair risk management compensation for the data breach settlement impact.
Important Deadlines and Dates
The Cash App data security settlement lets affected customers get back what they lost. But, knowing the key dates is vital. The deadline to submit claims is November 18, 2024, by 11 p.m. PT. Claimants must fill out their forms at cashappsecuritysettlement.com/submit-claim before then to get a share of the $15 million.
The deadline to opt-out or file an objection is November 1, 2024. The final hearing is on December 16, 2024, at 9:30 a.m. PT. But, this might get pushed to January 13, 2025. After approval, it could take months or years for payments to reach claimants, due to possible appeals.
Affected Cash App users must act before the deadlines to get their compensation. For more details or help, contact IndyStar reporter Cheryl V. Jackson at cheryl.jackson@indystar.com or 317-444-6264.
Understanding the Former Employee Data Breach
A former Cash App employee downloaded reports with sensitive info of 8.2 million U.S. customers. The data included names, account numbers, portfolio values, and investing activity. This happened after the employee was fired, using access they had while working.
Cash App revealed this in a 2022 SEC filing, admitting a four-month delay in telling customers. This breach shows the danger of insider threats. A Wall Street Journal survey found nearly 70% of companies worry about this.
Cash App uses verification codes sent to email or phone instead of passwords. This might make it easier for hackers to find account details on the dark web.
To fix these security issues, strong user authentication and cybersecurity are key. Also, protecting customer privacy and watching for unauthorized access are important steps.
| Key Data Points | Details |
|---|---|
| Affected Customers | Approximately 8.2 million current and former Cash App customers were impacted by the data breach. |
| Settlement Amount | The class action lawsuit settlement for the Cash App data breach is $15 million. |
| Maximum Compensation | Affected Cash App users may be eligible for up to $2,500 in compensation for losses related to the breach, including unauthorized withdrawals or charges. |
| Lost Time Reimbursement | Users can claim up to $25 per hour for up to three hours of lost time dealing with the breach. |
| Claim Deadline | The deadline to file a claim for compensation is November 18, 2024. |
To keep their accounts safe, Cash App users should enable two-factor authentication. They should also watch their accounts for any strange activity. Using secure networks and unique passwords for each account is also recommended.
Unauthorized Account Access Incident
In September 2023, Cash App faced a security breach. This breach involved unauthorized access to customer accounts. It happened when recycled phone numbers were used to access Cash App accounts linked to those numbers.
The exact number of affected users is unknown. But it’s clear that rights and financial regulations were broken. This could lead to a class action lawsuit.
The use of recycled phone numbers to access Cash App accounts is a big worry. It shows how important strong security is. It also shows how crucial it is for financial institutions to protect customer data.
This incident reminds Cash App users to stay alert. They should take steps to protect their accounts and personal info.
As more details come out, Cash App must fix the security issues. They need to talk clearly and quickly to affected customers. The company’s actions and any legal outcomes will be watched closely. The consumer rights, financial regulations, and class action lawsuit effects could be huge.
Settlement Distribution Process
After the final approval hearing, the $15 million Cash App data security settlement distribution will start. If there’s not enough money for all claims, payments will be reduced. The payment timeline could be long, possibly years, due to appeals.
It’s key for claimants to keep their contact info current. They must update it if they move after filing a claim.
Payment Timeline
The first payment was set for December 16, 2024. However, it might be pushed to January 13, 2025, pending court approval. This delay could happen if there are appeals.
Claimants should check the settlement website or contact the claims administrator for updates. This way, they’ll know about any changes to the payment schedule.
Pro Rata Distribution Details
If there are more claims than funds, payments will be split. Each claimant will get a share based on the total claims and available money. The claims administrator will explain how this works after final approval.
Cash App users affected by data security issues should keep up with the settlement process. Knowing the timeline and how payments will be split helps claimants prepare for their share.
Keeping contact info accurate and checking the settlement website regularly is crucial. This ensures claimants get their compensation on time. Cash App and Block Inc.’s efforts to improve security and protect data are important for rebuilding trust.
Security Improvements Promised by Cash App
Cash App and its parent company Block have agreed to improve security after a data breach. They will work on better consumer privacy and financial tech rules. But, they haven’t shared the exact details of these changes yet.
The deal requires Cash App to keep improving its security and watching for threats. They will try to stop unauthorized access and check their system for weaknesses.
Cash App wants to win back its users’ trust. They know keeping user data safe is key.
| Key Security Improvements | Expected Outcomes |
|---|---|
| Enhanced data encryption and access controls | Reduced risk of unauthorized access and data breaches |
| Regular security audits and vulnerability assessments | Proactive identification and mitigation of potential security threats |
| Improved incident response and customer notification processes | Faster and more effective handling of security incidents |
| Strengthened employee training on data security best practices | Increased awareness and compliance with security protocols |
Cash App is making big steps to protect its users’ data. They’re tackling the data breaches head-on and adding strong security.
Steps to Protect Your Cash App Account
After the Cash App data security settlement, it’s key to protect your account. Follow some important security steps and check your account often. This will help keep your Cash App safe and reduce risks from cyber attacks.
Security Best Practices
- Enable two-factor authentication for extra security.
- Use strong, unique passwords and don’t share them.
- Watch out for phishing scams and suspicious links.
- Update Cash App regularly for the latest security features.
- Don’t give out personal info like your sign-in code or bank details, even to support.
- Connect your Cash App to a bank account with little money to limit losses.
Account Monitoring Tips
It’s important to check your Cash App activity often. Turn on notifications for all transactions and report any odd activity to Cash App support. If you think you’ve been scammed, follow the steps in the app to report it and get help.
By following these security tips and staying alert, you can keep your Cash App safe from hackers. If you have questions or concerns, contact Cash App support at 1 (800) 969-1940 or through the app.
Legal Rights and Options for Class Members
If you use Cash App and have been affected by recent data security issues, you have several rights and options. You can claim compensation from a $15 million settlement fund. Or, you can choose to opt-out of the settlement by November 1, 2024, to keep your right to sue Cash App separately.
You can also object to the settlement terms by writing to the court before November 1, 2024. This lets you express any concerns or disagreements with the settlement. Or, you can decide to do nothing, which means giving up any chance for compensation and the right to sue Cash App on your own.
It’s crucial to think about each option carefully. They can greatly affect your legal rights and how much money you might get back. By understanding your rights and options, you can make a choice that protects your privacy protection, consumer rights, and financial regulations.
The deadline to file a claim in the $15 million Cash App class action settlement is November 18, 2024. To get compensation, eligible class members must show proof of any losses, time lost, or unauthorized transactions. The settlement aims to fairly compensate users for the effects of the data security incidents and unauthorized access.
Conclusion
The Cash App data security settlement is a big step forward. It tackles serious data breaches and unauthorized access issues. It offers up to $2,500 per affected person and demands better security.
This move holds Cash App and its parent company Block responsible. It aims to protect customer information better in the future.
Customers who were affected should file their claims before November 18, 2024. Even though Cash App and Block say they did nothing wrong, the $15 million settlement shows they’re serious about improving. They want to protect against future class action lawsuits by enhancing encryption protocols.
Users should keep up with the settlement news. They should also take steps to secure their accounts. This includes enabling two-factor authentication and watching their financial activity closely.
By joining this settlement, you can get back what you lost. You’ll also help make Cash App safer for everyone. This is a big step towards rebuilding trust and keeping personal data safe for millions of users.