Are You A Cash App User? You May Be Eligible For A Piece Of This $15 Million Settlement

NEW YORK — Current and past Cash App users may be eligible for a sizable portion of a proposed class-action settlement from the popular online payment service.

Earlier this year, Cash App Investing and its parent company, Block Inc., agreed to pay $15 million to settle a lawsuit alleging a “failure to exercise reasonable care” in protecting user information prior to and following recent data breaches. The class-action complaint described two occurrences in which access to some account data was hacked, resulting in multiple unauthorized charges for Cash App subscribers.

These consumers can now file a claim for a settlement payout, which could include up to $2,500 in out-of-pocket costs, prior to final approval. Here’s what you should know.

Are You A Cash App User? You May Be Eligible For A Piece Of This $15 Million Settlement

Why was Cash App sued?
Cash App and Block, based in Oakland, California, were sued for their response to recent security breaches and charges that they failed to install adequate security measures to protect its consumers.

The class action cited a 2021 event, which the business reported in 2022, in which a former employee downloaded reports for some US users without permission. It also mentioned another breach in 2023, when an unauthorized individual accessed several Cash App accounts via phone numbers that were tied to them.

Cash App and Block have denied all wrongdoing. However, they agreed to pay $15 million to resolve the lawsuit. Aside from attorneys’ fees and administration charges, the money will be distributed to impacted consumers who file qualified claims.

Cash App and Block both agreed to take steps to improve data security as part of the settlement. When The Associated Press contacted the company on Friday, it declined to comment further.

How may I receive a settlement payment?
You must claim the official settlement administrator’s website to receive a payment. The current deadline for submitting a claim is November 18, with the settlement’s final approval hearing scheduled for December 16.

Those eligible are current or former Cash App customers affected by unauthorised access to their personal information or fraudulent withdrawals between August 23, 2018 and August 20, 2019. You may have received a personalized letter alerting you of your eligibility for the settlement via mail or email; however, if you still need to, you can enter information about your position manually online.

How much money may I receive?
Settlement payouts will vary depending on qualified losses and the number of people filing claims.

Class members could be compensated for three claims: out-of-pocket losses, lost time, and transaction losses. With proper paperwork, you may be eligible for compensation of up to $2,500 in out-of-pocket losses, $25 per hour for missed time (limited to three hours), and additional relief for transaction losses.

According to the settlement administrator’s website, payouts may be decreased if insufficient money in the net settlement fund covers every authorized claim. If that is the case, payouts will be correspondingly reduced based on the percentage of each class member’s claim.

What other choices do I have?
Class members can “opt out” of the settlement before November 1. This allows you to sue or participate in a future relevant case against the defendants. You may also object to the settlement agreement by writing to the court before November 1.

Finally, you can decide to do nothing. However, if you choose not to take action, you will not get any money and may lose the ability to sue again for claims covered by the settlement.

How can I continue to protect my data?
Avoiding data breaches totally can be difficult in today’s ever-digitized world, but consumers can take certain precautions to safeguard themselves in the future.

Are You A Cash App User? You May Be Eligible For A Piece Of This $15 Million Settlement

The fundamentals include setting difficult-to-guess passwords and utilizing multifactor authentication whenever possible. If you receive a breach notification, you should change your password and watch account activity for any unusual activities. It would help if you also looked for reliable contact information on a company’s official website, as scammers may try to gain your trust through look-alike phishing emails or phone calls in response to news about data breaches.

Furthermore, the Federal Trade Commission emphasises that nationwide credit agencies, such as Equifax, Experian, and TransUnion, provide free credit freezes and fraud alerts that customers can put up to help protect themselves from identity theft and other fraudulent conduct.

The American Bankers Association and others also advise caution while utilising payment apps such as Cash App, Zelle, and Venmo. It’s best to double-check that you know who you’re sending money to, and avoid clicking on links in unexpected emails, texts, or messages.

SOURCE | AP