Time Is Running Out to Claim Up to $2,500 in a Cash App Settlement

Cash App users may be able to claim up to $2,500 in a class action settlement related to data breaches, but the Nov. 18 submission deadline is fast approaching.

The payments app and its parent company Block recently agreed to a proposed $15 million settlement to resolve a lawsuit that pertained to unauthorized individuals accessing account data.

However, the class action settlement only includes people who satisfy certain eligibility rules, and the requirements for qualifying are more cumbersome than those of some other recent class action cases like the 2023 Facebook privacy settlement.

Cash App is best-known as a platform for peer-to-peer payments. The app also offers a debit card and investing services. The company continues to deny wrongdoing in the case, but acknowledges there was a “data security event” in December 2021.

According to the lawsuit, 8.2 million customers had their information exposed including names, brokerage account numbers and investing activity — including portfolio values.

Cash App says that a former employee downloaded reports that contained customer information. "While this employee had regular access to these reports as part of their past job responsibilities, in this instance these reports were accessed without permission after their employment ended," Cash App said in an SEC filing in 2022.

In another alleged incident that was disclosed in September 2023, an individual got unauthorized access to accounts "using recycled phone numbers that were linked to the account," according to the settlement website. (This refers to phone numbers that have been reassigned after the previous user ended service or changed numbers.)

Who is eligible for the Cash App settlement?

Customers who were affected by the breach can qualify for compensation if they can show they suffered losses.

The first condition is that you either are or were a customer of Cash App or Cash App Investing, or an affiliated company.

The second condition is more complicated:

• You may qualify if your account or personal information was "accessed or obtained without your authorization."
• Alternatively, you may qualify if you "had unauthorized or fraudulent withdrawals or transfers of funds to or from, or a deficiency in the resolution of an error in a Cash App account or any linked financial account" during the period from Aug. 23, 2018 to Aug. 20, 2024.

The next question is whether you can document any related losses. These could include “out-of-pocket losses” like costs for credit monitoring or identity theft insurance purchased by the Cash App user, fees for initiating a credit freeze or overdraft fees.

Cash app users could also be compensated for up to three hours of lost time and they can get compensated if their accounts were compromised and funds were stolen.

Given these rules, it’s unclear how many people will ultimately get paid out from the settlement.

The claims administration firm and attorneys representing the settlement class did not respond to Money's requests for information about the number of claims and the expected average payout.

How to apply for the Cash App settlement

If you satisfy the eligibility requirements, you can apply for your piece of the settlement by submitting a claim online.

The website asks users to submit a notice ID and a confirmation code if they received a personalized notice about the settlement in the mail or by email.

There's also an option for people who weren't contacted to submit a claim and make the case that they're eligible.

You'll be asked if there were unauthorized withdrawals from your Cash App account or linked accounts. You should submit supporting documentation like communications with Cash App, receipts documenting losses or police reports.

The deadline to submit a claim is Nov. 18, 2024 and the final approval hearing is set for Dec. 16. However, a note on the settlement website explains that hearing date will be extended to Jan. 13 pending court approval. After a class-action settlement is approved, it can take months or even years for everyone to be paid. Appeals are common and the proceedings that follow take time to resolve.

How much is the Cash App settlement?

The settlement provides compensation of up $2,500 for out-of-pocket losses and people who are eligible can submit a claim for up to three hours of lost time at a rate of $25 per hour.

Victims of transaction losses like unauthorized withdrawals can also submit claims to seek reimbursement for the amount lost.

The settlement agreement is yet to be finalized and exact payment amounts will depend on how many people submit claims. If there isn't enough money to pay out all the claims in full, the settlement will be proportionally distributed.

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