Cash App owner Block to pay $175M over fraud caused by lax consumer protection practices
By 
Adrianne Appel2025-01-17T17:43:00
Block, the owner of Cash App and Square, will pay $175 million to settle allegations that its lax consumer protection practices put customers at high risk of fraud, the Consumer Financial Protection Bureau (CFPB) said Thursday.
Banks, credit unions, and other financial institutions are subject to oversight by federal agencies, to ensure they follow rules intended to prevent fraud and lead to fairness for customers, investors, and competitors.
Payment apps have surged in popularity and, until recently, received little oversight because agencies weren’t clear whether and how existing rules could be applied to these novel entities. Payment apps now process over 13 billion transactions annually.
Related articles
-
News BriefNavy Federal Credit Union to pay $95M in fines, redress over ‘surprise’ overdraft fees
Navy Federal Credit Union will pay a $15 million fine and return $80 million in “surprise” overdraft fees to its members to resolve an enforcement action from the Consumer Financial Protection Bureau.
-
ArticleFraud risks grow as cost of living soars
Just as fraud grew during the Covid-19 pandemic, so will it now flourish with prices at historic highs. The question is just how widespread this fraud surge will prove to be and what can be done to help prevent it.
-
ArticleCash App breached by former employee; 8.2M affected
Approximately 8.2 million U.S. customers of Cash App Investing have been notified of a data breach carried out by a former employee of the mobile payment service provider.
More from Regulatory Enforcement
-
News BriefDOJ sues Uber over alleged discrimination against disabled riders
The DOJ sued Uber Thursday, alleging it violated the Americans with Disabilities Act (ADA) by denying people with disabilities equal access to its services.
-
ArticleEU targets crypto, fintech firms in push to tackle money laundering
Europe’s banking regulator warns that weak compliance at fintech, regtech, and crypto firms may let money laundering and terrorist financing risks slip through. The EBA also found EU regulators’ approaches are often inconsistent and unclear.
-
ArticleCalifornia, Colorado, and Connecticut launch joint crackdown on privacy violators
California, Colorado, and Connecticut launched a joint enforcement sweep against businesses that fail to honor consumers’ online opt-out requests, the states announced Tuesday.