Some Cash App users may soon find themselves with up to $2,500 thanks to a significant settlement of $15 million related to a data breach.
A lawsuit was filed following a breach in 2021 that allegedly led to the “unauthorized public release of personally identifiable information for 8.2 million current and former Cash App Investing customers,” as reported by USA Today, referencing a class-action suit initiated in 2022.
In March 2024, Cash App, along with its parent company Block Inc., agreed to the settlement, though neither party admitted to any wrongdoing, according to the report.
Payments are expected to start going out this month to those who filed claims before the deadline two years ago, as indicated by the settlement website.
To qualify, users needed to have reported any unauthorized or fraudulent withdrawals or transfers from their accounts between August 23, 2018, and August 20, 2024, and must have submitted a claim for damages by November 18, 2024.
Individuals affected can claim reimbursements for losses of up to $2,500, which includes lost funds resulting from transactions and compensation for time spent dealing with the breach—up to three hours at a rate of $25 per hour.
It’s worth noting that any claims submitted after the November 2024 deadline will not be accepted, as stated on the settlement website.
This $15 million settlement, while substantial, also takes into account legal and administrative fees along with valid claims from users.
Cash App, introduced in 2013, functions as a mobile financial platform that allows users to send and receive money, invest in Bitcoin and stocks, apply for loans, and manage taxes, as per USA Today.
While it’s not a bank, Cash App does offer features like an interest-earning savings account and a debit card for users to make purchases and withdraw cash from ATMs.
