Cash App Data Security Settlement: How to File a Claim

Cash App Data Security Settlement

In today’s hyper-connected world, data breaches are unfortunately all too common. In August 2024, a stark reminder of this reality emerged when Cash App, a popular mobile payment service, agreed to a $15 million settlement following a class-action lawsuit concerning serious data security breaches. This settlement underscores the critical importance of robust data security measures and highlights the potential consequences for companies that fail to adequately protect user information.

Understanding the Data Breaches

The lawsuit centered around two critical incidents:

2022 Data Breach

A former Cash App Investing employee, despite no longer being employed, accessed user account data without authorization. This breach compromised sensitive information, including investment activity and portfolio values, of millions of customers.

2023 Data Breach

Unauthorized access to Cash App accounts occurred due to the exploitation of a vulnerability related to “recycled phone numbers.” This allowed malicious actors to gain control of accounts linked to these numbers.

Background of the Settlement

The legal action stemmed from incidents where unauthorized parties accessed personal information of Cash App users. Notably, in December 2021, a former employee downloaded sensitive data of approximately 8.2 million current and former Cash App Investing customers without permission. This breach highlighted significant lapses in data security protocols (source).

Eligibility Criteria for Claimants

To qualify for a portion of the Cash App data security settlement, individuals needed to meet specific criteria:

  • Account Activity: Users must have had an active Cash App account between August 23, 2018, and August 20, 2024.
  • Unauthorized Access: Claimants should have experienced unauthorized access to their accounts or detected fraudulent withdrawals or transfers during the specified period.
  • Documentation: Submission of evidence such as receipts, bank statements, or police reports was required to substantiate claims.

Settlement Details

Eligible users could claim compensation for:

  • Out-of-Pocket Losses: Reimbursements up to $2,500 for documented financial losses directly linked to the data breaches.
  • Lost Time: Compensation for up to three hours at a rate of $25 per hour for time spent addressing issues related to the breach.

The deadline to submit claims was November 18, 2024. Late submissions are no longer accepted (source).

Cash App Data Security Settlement Payout Date

As of January 2025, the distribution of settlement funds is anticipated to commence in the coming months. Claimants are advised to monitor official communications for updates on payout dates.

Recent Developments

In January 2025, the Consumer Financial Protection Bureau (CFPB) fined Cash App and its parent company, Block, $175 million for mishandling customer fraud complaints during the pandemic. The CFPB found that Cash App did not properly investigate reported fraud cases and directed customers to seek assistance from their linked banks. Of the total fine:

  • $120 million will be distributed to affected customers as refunds.
  • $55 million will go to a victim relief fund (source).

Cash App Data Security Settlement Claim Form

To participate in the settlement, eligible users must file a claim through the official settlement website: cashappsecuritysettlement.com.

Steps to File a Claim:

  1. Gather Necessary Documentation: For claims involving transaction losses or unauthorized access, it’s crucial to gather supporting documentation. This may include:
    • Bank statements
    • Correspondence with Cash App
    • Police reports
    • Receipts for expenses incurred due to the breach (e.g., credit monitoring services)
  2. Submit Your Claim Online: Complete and submit the online claim form, or print and mail it to the designated address provided on the settlement website.
  3. Meet the Deadline: The deadline for submitting claims was November 18, 2024.

Cash App Data Security Settlement Amount

The amount of compensation varies depending on the nature of the claim.

  • Out-of-Pocket Expenses: Reimbursement for costs incurred due to the breach, such as:
    • Credit monitoring services
    • Identity theft insurance premiums
    • Costs associated with freezing credit reports
    • Fees for replacing compromised bank cards
  • Lost Time: Compensation for time spent addressing issues related to the breach, up to a maximum of three hours at a rate of $25 per hour.
  • Transaction Losses: Reimbursement for unauthorized or fraudulent transactions, with a maximum claim limit of $2,500.

Finding Cybersecurity Experts:

  • Search online databases: Websites like LinkedIn, Google Scholar, and university faculty directories can help you find cybersecurity experts.
  • Contact cybersecurity organizations: Reach out to cybersecurity organizations and associations for potential expert contacts.
  • Look for published research: Identify cybersecurity researchers who have published articles or conducted studies on relevant topics.

Protecting Yourself Against Future Breaches

This settlement serves as a reminder of the importance of robust data security practices. To minimize the risk of future data breaches, consider these proactive steps:

  • Use Strong Passwords: Utilize strong, unique passwords for your Cash App account and other online platforms.
  • Enable Two-Factor Authentication: Activate two-factor authentication (2FA) for enhanced account security.
  • Regularly Monitor Account Activity: Review your Cash App transaction history frequently for any suspicious activity.
  • Be Cautious of Phishing Attempts: Be vigilant of phishing emails, texts, or calls that may attempt to trick you into revealing your account credentials.

Additional Resources

For more information on the settlement and to access relevant documents, visit: