Block (formerly Square)—CFPB ordered Block to pay $175M for Cash App fraud failures and misleading customer service
The Consumer Financial Protection Bureau ordered Block to pay up to $175 million ($120M in consumer refunds, $55M penalty) after finding Cash App employed weak security protocols, conducted incomplete fraud investigations, provided misleading customer service (phone number led to a pre-recorded message, not live support), and failed to act on knowledge that customers were being targeted by fraudsters impersonating Cash App representatives. Block also shifted responsibility to banks while blocking them from reversing fraudulent transactions.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Corporate Governance | -against | primary | -1.00 |
| User Privacy | -against | secondary | -0.50 |
| Overall incident score = | -0.443 | ||
Score = avg(topic contributions) × significance (critical ×2) × confidence (0.59)× agency (negligent ×0.5)
Evidence (1 signal)
CFPB press release ordering Block to pay $175M for Cash App failures on fraud
The CFPB issued a consent order requiring Block to pay up to $175 million for Cash App's failures to protect customers from fraud, including weak security protocols, incomplete investigations, and misleading customer service.