# States Settle with Block Inc. Over Cash App Fraud

Multiple state Attorneys General, including Michigan, Oregon, and Washington, have reached a combined **$65 million settlement** with Block Inc., owner of Cash App, addressing allegations of deceptive marketing and inadequate fraud protections on the platform. The settlements require Block to enhance customer support, cease misleading safety claims, and reimburse consumers affected by fraud. Washington separately secured a **$20 million settlement** related to fraudulent unemployment benefit transfers through Cash App during the COVID-19 pandemic. These actions highlight increased regulatory scrutiny on fintech platforms regarding consumer protection and fraud prevention.

- **Why this matters:** Procurement and compliance teams should anticipate heightened regulatory expectations for fintech vendors, especially regarding fraud safeguards and transparent consumer communications.
- Agencies and contractors working with or considering fintech solutions must evaluate vendor risk management practices and ensure contractual provisions address fraud prevention and consumer protection.
- The settlements underscore the importance of robust customer support infrastructure and truthful marketing claims in government-related financial services procurement.
- Organizations may find opportunities to provide enhanced fraud detection, compliance consulting, and customer service solutions to fintech providers adapting to these regulatory requirements.

**Jurisdictions:** sled
**Industries:** Public Safety, Information Technology
**Topics:** Regulatory Compliance, Cybersecurity
**Published:** July 09, 2026

### Government Entities
- Washington State Attorney General's Office (AGO)
- Oregon Department of Justice
- Office of the Michigan Attorney General

### Vendors
- Block Inc. (Subject of settlements, owner of Cash App)

### Key Quotes
> Customer safety should always be a top priority, and when a company misleads and fails to protect its users from fraud, it must be held accountable.
> — Dana Nessel, Attorney General

> Block presented Cash App as a safe alternative to a traditional bank but failed to create the robust protections and safeguards that Washington law requires.
> — Nick Brown, Attorney General

> Cash App told people their money was safe, and millions of Oregonians and Americans believed them, including a lot of people who didn’t have other options
> — Dan Rayfield, Attorney General

### Sources
- [Attorney General: AG Nessel Announces $45 Million Multistate Settlement Over Deceptive Practices on Cash App](https://www.michigan.gov/ag/news/press-releases/2026/07/09/ag-nessel-announces-45-million-multistate-settlement-over-deceptive-practices-on-cash-app) - MI
- [Attorney General Rayfield Announces $45 Million Multistate Settlement with Block Inc. Over Deceptive Practices on Cash App - Oregon Department of Justice  : Media](https://www.doj.state.or.us/media-home/news-media-releases/ag-rayfield-announces-45m-multistate-settlement-in-cash-app-investigation/) - OR
- [Block Inc., owner of Cash App, settles two disputes with WA | Washington State](https://www.atg.wa.gov/news/news-releases/block-inc-owner-cash-app-settles-two-disputes-wa) - WA