Arkansas Attorney General Tim Griffin has announced that the state will receive a portion of a $45 million settlement with Block, Inc., which operates CashApp.

LITTLE ROCK, Ark. — Arkansas Attorney General Tim Griffin announced on Wednesday that the state will receive a portion of a $45 million settlement with Block, Inc., the company operating the popular mobile payment platform Cash App.

The state will receive $453,754 from the settlement, with Griffin stating: “Protecting consumers is a key priority for this office, and I am pleased with the outcome of this case.”

Officials stated that Block, Inc. (Block) told Cash App users their money was safe, implying that the app worked like a bank, with the same protections, which wasn’t true. 

The company promoted direct deposits of paychecks and government benefits into Cash App, particularly to unbanked and underbanked consumers.

According to officials, Block grew its user base without making sure it could support those users when problems arose.

“This settlement resolves a lawsuit that my office, along with 45 other attorneys general, brought against Block, Inc,” Griffin said. “For misleading consumers about the safety of Cash App, for failing to protect consumers from fraud on the platform, and for not providing fraud protection and resolution that was required by law and that the company had committed to providing.”

Under the settlement, Block has agreed to conduct responsible practices to resolve these issues, including:

•   Keep customer support that can resolve fraud complaints, account lockouts, and other problems.
•   Offer live support 24 hours a day, with a human available by phone at least 13.5 hours a day and by live chat at least 18 hours a day.
•    Stop making false or misleading claims about Cash App’s safety and how it protects users from fraud.
•    Discontinue marketing practices known to increase fraud on the platform.
•    Directly educate consumers about common types of fraud.
•    Fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.

More information on the settlement can be found here.