Cash App customers could receive slightly more than $2,500 each after the mobile payment service and its parent company, Block, agreed to a $15 million data and security breach class-action settlement. Customers whose accounts had fraudulent transfers or withdrawals or were accessed without their consent are eligible for the class-action settlement as long as they had or still have a Cash App account from August 23, 2018, to August 20, 2024.
The class-action was based on a 2021 incident where a former Cash App employee downloaded reports from American accounts without authorization as well as another breach by an unauthorized user who used linked phone numbers to access some accounts. The plaintiffs claimed that Cash App and its parent company didn’t safeguard confidential user information by failing to install controls to keep unauthorized users out of the system. Furthermore, the class-action claims Cash App handled user complaints about fraudulent transactions and security breaches improperly.
Block and its mobile payment services subsidiary, Cash App, denied the plaintiffs’ claims but agreed to pay a $15 million settlement and work to improve its data security. Once administration costs and attorney fees are covered, the remaining settlement will go to affected Cash App users who file eligible claims by November 18.
Eligible users can file a Cash App claim at this website by entering a notice ID and confirmation code from an emailed or mailed notice, or filing a claim if they still haven’t received a notice. The amount of money Cash App customers can receive from the settlement will depend on how many people file eligible claims. Those affected by the security and data breaches will be eligible for reimbursement of up to $2,500 to cover out-of-pocket losses as long as their claims are backed by third-party documentation.
The out-of-pocket losses include costs incurred from identity theft insurance, credit report requests, credit freezes, payment-card cancellations and replacements, unrefunded late payments, missed payments, charges, overdraft fees, and closing bank accounts and opening new ones. The settlement website noted that affected Cash App customers can also claim lost time and transaction losses with the latter requiring third-party documentation, such as police reports.
Cash App customers may receive the settlement on a reduced pro rata basis if the number of approved customers is so great that the settlement can’t fully cover each approved claim. Members of the class action who don’t want to receive the settlement can opt out before Nov. 1, 2024, while those who oppose the settlement will also have until the same date to write to the court.
This case serves as a reminder to all players in the mobile-payments space, including established companies such as FingerMotion Inc. (NASDAQ: FNGR), that data security is of paramount importance and security breaches could even lead a company to go under.
NOTE TO INVESTORS: The latest news and updates relating to FingerMotion Inc. (NASDAQ: FNGR) are available in the company’s newsroom at https://ibn.fm/FNGR
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