Cash App users who want to join a class-action lawsuit against the American company had until last week to file their claim. Cash App is a digital wallet service that lets people in the US send, receive, and store money.
Cash App has a current annual revenue of nearly $15 billion. The lawsuit is because Cash App did not protect users’ security from security breaches.
Class-action lawsuit could reward plaintiffs $2,500
The billion-dollar company was sued in February in a class-action suit. Cash App users say that Cash App Investing and Block, the company that owns Cash App, were careless in how they handled two major data breaches.
The first one happened in 2022, when someone who used to work at Cash App Investing got into user accounts without permission.
The second breach happened in 2023. Someone who was not supposed to have access got into some Cash App accounts by using old phone numbers that were linked to those accounts.
Users say that both breaches were handled badly and that the companies did not do enough to protect sensitive information and stop more security holes.
People are worried about how committed the companies are to protecting user data and making sure they have strong security measures in place.
Users have also said that Cash App Investing does not have strong security measures and controls in place, and they say that the company does not care about their concerns about fraudulent transactions happening through the app.
In August of this year, Cash App agreed to take a $15 million settlement as payment. Cash App and Block have agreed to make data security stronger as part of the settlement. Still, they keep denying any wrongdoing or responsibility.
Who qualified to join the Cash App class-action lawsuit?
Between August 23, 2018, and August 20, 2024, you could have filed a claim to join the class-action lawsuit if someone accessed your account without your permission or if you had fraudulent withdrawals or transfers.
Between August 23, 2018, and August 20, 2024, your Cash App account must have been active during that time. Users who have made a claim could get up to $2,500 in settlement if they can show proof that they lost money during the claim.
As more people bank and invest online, security breaches of users’ data are becoming a bigger problem as hackers get better at getting to protected user data.
Cyber criminals are always coming up with new, more advanced ways to take advantage of security holes, which puts private financial data at risk.
Boosting security not only helps keep customers’ information safe, but it also helps keep trust and credibility in a digital banking world that is always changing.
Cash App assures stakeholders and users they are committed to preventing fraud
Cash App has told everyone that, even though the breach is still being looked into, its business operations and financial stability should not be affected.
Cash App said in a statement, “At Cash App, we value our customers’ trust and are dedicated to keeping their information safe.” As soon as we found out about the problem, we fixed it and started an investigation with the help of a top forensics firm.
We knew how these reports were gotten to, and we told the police about it. We are also getting in touch with customers whose data was affected. We are also still looking at and improving the technical and administrative safeguards that keep information safe.
Cash App has been one of the most popular peer-to-peer payment platforms since it first came out in 2023. In 2018, more people downloaded Cash App than Venmo.
But they have been criticized for a long time for not having strong security measures, and users have reported many scams.
In spite of this, the app is still a popular digital wallet service, and it is often referenced in pop culture, especially in hip-hop. There are about 200 references to the app in hip-hop song lyrics.
