In today’s digital age, when almost every financial transaction is done online, mobile payment apps like Cash App have become an important part of our economic activities. These apps have not only become the fastest way to send and receive money, but many people also use them for investing, bill payments and savings. But when it comes to data security, these apps sometimes prove to be weak and their security lapses put the personal and financial information of millions of users at risk. Such incidents not only cause financial losses but also cause mental stress and a huge waste of time. If you have used Cash App between 2018 and 2024, then there is good news for you: under a major class-action settlement, you can get compensation of up to $2,500. In this article, we will know in detail what this settlement is, who is eligible under it, how you can claim, and why this process is important.
The full story of the Cash App data breach: How did this big blow happen?
2021 proved to be a dark year in the history of Cash App, when a major security lapse of the company came to light. A former employee, who had left the company, misused his old contacts and access to gain unauthorized access to sensitive information of thousands of users. This information was not limited to names or contacts but also included account numbers, brokerage activities, and detailed data related to transactions. This had a profound impact on the personal and financial lives of users.
This was followed by another security lapse in 2023, in which the security of many accounts was affected through recycled phone numbers. These incidents created fear and confusion among Cash App users. In both these cases, users not only suffered financial losses but also had to remain vigilant for years to protect their identities. To deal with this, many users initiated legal action against the company, which eventually led to this major class-action lawsuit.
$15 million class-action settlement: What does it mean and what is its impact?
A class-action settlement is a process in which the affected parties and the company reach an agreement to avoid a long and costly legal battle. Block Inc., the parent company of Cash App, although they claimed that they did not commit any legal wrongdoing, agreed on an amount of $15 million to provide relief to their users. The purpose of this was to provide fair compensation to the affected users so that they can recover their losses. This amount will be distributed directly to the users based on their losses.
This will save the affected users from having to go through legal complications, and they will be able to directly receive compensation for their financial loss. This settlement is not only a means of financial help, but it also shows the company’s responsibility towards the users, that they respect the rights of their customers and are trying to correct the security lapse.
Who is eligible under the settlement and how do you know if you are eligible?
Under this settlement, only those users can claim who had an active account on Cash App between August 23, 2018 and August 20, 2024 and whose data was breached in some way. There are two main eligibility criteria: first, for users who have suffered direct economic losses, such as money withdrawn from their account without permission or overdraft fees; second, for those who invested time and effort in protecting the account, such as fraud reporting or account recovery. If you have already received any compensation for your losses, you will not be eligible for this settlement.
Also, to claim economic losses, you will have to submit relevant documents such as bank statements, transaction receipts, emails, etc., while no such proof is required for loss of time. This arrangement is designed so that as many affected people as possible can benefit and get compensation for their losses.
How much compensation will be given and how will it be distributed?
The amount of compensation under the settlement is as follows: Users who have suffered direct economic losses can claim up to $2,500. This may include money stolen from their account, other expenses incurred as a result of the fraud, or expenses such as credit monitoring. On the other hand, those who did not suffer financial losses but who spent time on fraud reporting, phone calls or account recovery can receive compensation of up to $75, which is calculated based on up to three hours at $25 per hour.
This amount is to partially cover the loss of users. Compensation will be sent directly to the user’s bank account, PayPal account or check, for which the payment method has to be selected when making a claim. The payment process will begin after the final approval of the court, which is scheduled for January 2025. The distribution of payments may take time, as each claim has to be investigated, verified and approved.
How to make a claim? Detail of the entire process
Making a claim is extremely simple and online. First, you need to visit the official website cashappsecuritysettlement.com, where a claim form is available. Fill in your personal information like name, address, email, and Cash App account details, in this form. Then you have to explain how you suffered loss or how many times and for how long you tried to secure the account. If you have to claim financial loss, then you have to upload documents like bank statements, receipt or emails as proof of your loss.
After filling out the form, submit it online or if you want, you can also send it by post. The last date for submitting the claim is 18 November 2024, so it is important to complete it on time. After submitting the claim, you will receive a confirmation number so that you can track the status of your claim online. There is no charge in this entire process and always use the official website so that you can avoid any fraud.
When will you get payment and by what methods?
Payments will start only after the settlement is approved by the court, the final hearing of which is scheduled for January 13, 2025. After approval, payments will be made in a phased manner from mid- to late 2025. The payment time will be affected according to the number of claims and the speed of their verification process. Payments can be made directly to your bank account, PayPal account, or through check, so it is important to choose the right payment option when making a claim. Even after receiving the payment, you can track the status of the claim online and contact the helpline number 1-866-615-9740 for any issues.
Common examples and situations: Is your situation eligible for a claim?
Many users are confused about whether their situation is eligible for this settlement. For example, if money was withdrawn from your account without permission in 2023 and you did not claim it earlier, you can get compensation of up to $2,500, provided you have the relevant documentation. In the second case, if you did not lose money but spent two to three hours trying to secure your account or talking to customer service, you can get compensation of up to $75. In the third case, if you paid for identity theft protection, such as an identity monitoring service, then it can also be claimed with the receipt. These examples are to explain what types of incidents and losses are covered under this settlement.
How to ensure the security of your account in the future?
Although you will get compensation from this settlement, the best way is to avoid such cases in the future. For this, first of all, enable two-factor authentication (2FA) on your Cash App account, which greatly reduces the possibility of unauthorised access to your account. Also, create strong and unique passwords and change them regularly. Do not use old or recycled phone numbers and devices. Avoid using financial apps on public Wi-Fi networks, as these networks are often unsecured and make your data an easy target for hackers. Also, keep checking your account activities from time to time and take immediate action on any suspicious activity. These steps will help protect you from financial fraud in the future.
Conclusion: Why does this settlement matter to you?
Cash App’s $2,500 compensation settlement is a great opportunity for users who have lost the security of their financial information or faced any account-related problems. This not only provides financial relief but also sends a message that your safety and rights are important. If you were using Cash App between 2018 and 2024, do not forget to take advantage of this settlement, as the last date to claim is near. This will not only help you recover your losses but also make you aware of your financial security in the future. Make a claim in time and protect your rights.
FAQs
Q. Who is eligible for the $2,500 Cash App settlement?
A. Users who had an active Cash App account between August 23, 2018, and August 20, 2024, and were affected by the data breaches.
Q. What types of compensation can I claim?
A. You can claim up to $2,500 for documented financial losses or up to $75 for time spent recovering your account.
Q. How do I file a claim?
A. Visit the official website cashappsecuritysettlement.com, fill out the online form, and submit any required documents before November 18, 2024.
Q. When will I receive the payment?
A. Payments will be distributed after final court approval, expected between mid to late 2025.
Q. Is there a fee to submit a claim?
A. No, the claims process is completely free. Only use the official settlement website to avoid scams.
