Cash App Settlement: Users May Receive Up to $2,500 Amid $15 Million Payout
Cash App, a widely used mobile payment service, has recently been ordered to pay $15 million in a legal settlement. This payout is expected to impact many users who may be entitled to compensation of up to $2,500 if they have experienced unauthorized or fraudulent activities on their accounts. Here’s everything you need to know about this settlement and how you might benefit from it.
What is the Cash App Settlement About?
The settlement comes in response to a class-action lawsuit that alleges Cash App, along with its parent company Block, failed to protect users’ personal information adequately. The lawsuit points to incidents where unauthorized individuals accessed users’ accounts due to data breaches. Specifically, a former employee accessed account data in 2022, and in 2023, other users exploited recycled phone numbers linked to Cash App accounts.
As a result, Cash App has agreed to pay $15 million to settle the claims. Users who had their accounts compromised between August 23, 2018, and August 20, 2024, may be eligible for compensation.
Am I Eligible for a Claim?
To be eligible to file a claim, users must have had an active Cash App account between August 23, 2018, and August 20, 2024. This includes those who experienced unauthorized withdrawals, transfers, or any other fraudulent activities on their accounts during this period. However, if you have already been reimbursed by Cash App or a third party, you are not eligible to make a claim under this settlement.
What Types of Claims Can Be Filed?
Cash App users can file several types of claims under the settlement:
- Out-of-Pocket Losses: If you experienced financial losses due to unauthorized transactions and can provide documentation of these losses, you might be eligible for reimbursement. This could include up to $2,500 for verified out-of-pocket expenses related to the breach.
- Lost Time: If you spent time dealing with the effects of the breach, such as resolving issues with your account, you could claim compensation for up to three hours of your time. The compensation rate is $25 per hour.
- Transaction Losses: For users who suffered monetary losses due to unauthorized transactions that have not been reimbursed, claims can be filed to seek compensation.
How to Submit a Claim
To file a claim, you need to complete and submit the claim form by November 18, 2024. The form can be submitted online at the dedicated settlement website. For those who prefer to send their claim via mail, the postmarked date should also be by November 18, 2024.
When submitting your claim, ensure you include all necessary documentation to support your claim, such as records of unauthorized transactions or evidence of lost time. If you have multiple claims related to different accounts, list all relevant information on a single claim form.
If mailing your claim, send it to the following address:
Cash App Settlement
Attn: Claim Form Submissions
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Note that there was a previous deadline of October 15, 2024, mentioned in an older version of the form. The updated deadline is November 18, 2024, but it’s advisable to follow the earlier date if you are close to the deadline.
When Can I Expect to Receive My Payout?
A final approval hearing for the Cash App settlement is scheduled for December 16, 2024. If the court approves the settlement, payments to eligible users will be processed after this date. It’s important to keep an eye on any updates regarding the settlement approval and payment distribution.
How to Protect Your Cash App Account
While waiting for the settlement process to conclude, it’s crucial to take steps to secure your Cash App account and personal information. Ensure that you use strong, unique passwords and enable two-factor authentication to add an extra layer of security. Regularly monitor your account for any unusual activities and report any concerns to Cash App immediately.
Conclusion
The $15 million settlement by Cash App is a significant step towards addressing the issues of unauthorized data access and fraud affecting users. If you have experienced any problems with your Cash App account during the specified period, make sure to file your claim by the deadline to potentially receive up to $2,500 in compensation. Stay informed about the settlement process and continue to take proactive measures to protect your personal information.
This settlement serves as a reminder of the importance of cybersecurity and the need for companies to maintain robust security measures to protect user data. As the legal proceedings progress, affected users will hopefully receive the compensation they are entitled to and be reassured that their concerns are being addressed.