Block has agreed to pay $45 million to resolve allegations from 46 state attorneys general that Cash App misrepresented its security capabilities whilst failing to adequately protect users from fraud. The app's design flaws—including permitting account creation without identity documents, unlimited account opening per person, and the absence of official customer support—created opportunities for scammers to exploit the platform, leaving users with limited recourse when locked out of accounts.

The settlement comes as fintech applications increasingly function as primary banking services for many Americans, prompting heightened regulatory scrutiny. Block will now implement enhanced fraud detection systems and establish live customer support as part of the agreement. This enforcement action follows a substantially larger $175 million penalty imposed by the Consumer Financial Protection Bureau for similar failures in fraud investigation and customer service.