Kentucky recently received over $556,000 in a settlement with CashApp after the mobile wallet platform was accused of deceitful business exercises.
Kentucky was among 45 other states a part of the lawsuit, and in total the settlement cost CashApp around $45 million. According to a news release from Kentucky Attorney General Russell Coleman’s office, an investigation was launched in 2021 looking into Block, Inc. which owns CashApp.
The investigation alleges that Block wasn’t fully transparent about CashApp’s safety and insurance coverage, did not maintain refund protections and wrongfully froze users’ accounts. The funds from the settlement will reportedly go to CashApp users across the state who were defrauded.
In the settlement, CashApp also must improve its security and customer service, which will include the addition of 24-hour live customer support; anti-fraud safeguards and procedures for issuing account suspension, deactivation and lock notifications.
Coleman says the safeguards will help prevent Kentuckians from falling victim to fraud in the future.