What Happened
Block, Inc., formerly Square, Inc., and co-founded by Jack Dorsey, has reached a settlement of $45 million with 46 U.S. states to resolve allegations of fraud concerning its Cash App platform. The settlement addresses claims that the company failed to implement adequate security measures to prevent the creation and use of fraudulent accounts.
According to the settlement terms, Block will pay the $45 million to the participating states. The probe into Cash App's alleged fraudulent activities was led by Oregon, which will receive $3 million from the settlement. The company has been accused of not adequately protecting customer data and allowing for the creation of fake accounts that were subsequently used for illegal transactions.
Key Facts
- 1
Block, Inc. has agreed to a $45 million settlement.
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The settlement is with 46 U.S. states.
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The settlement resolves claims of fraud related to Cash App.
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Block is the company formerly known as Square, co-founded by Jack Dorsey.
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Oregon led the probe into Cash App fraud.
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Oregon will receive $3 million from the settlement.
