Good news for users of the Cash App payment application who are affected by a recent and gigantic security problem suffered by this popular platform, widely used in the United States.
Earlier this year, Cash App Investing and its parent company, Block Inc., agreed to pay a sum of $15 million to settle a lawsuit that accused them of not taking the necessary precautions to protect their users’ information.
The class action lawsuit informed of two specific incidents, seen as major by the plaintiffs, in which the security of user data was compromised, resulting in unauthorized charges for several Cash App customers, some losing thousands of dollars.
The first incident, which occurred in 2021, but was revealed by the company only in 2022, involved a former employee who downloaded reports from some users in the United States without permission.
Subsequently, in 2023, another incident was revealed in which an unauthorized user managed to access some Cash App accounts using phone numbers associated with said accounts. This compromised the security of the private and credit card data of thousands of users.
Although Cash App and Block Inc. they have denied that they acted improperly, they decided to resolve the legal dispute through this agreement. In addition to legal and administrative costs, the settlement money will go to compensate affected customers who submit valid claims.
Requirements to Receive the Payment of the Cash App Lawsuit
If you are one of the affected users, you may be eligible to receive a settlement payment. To do this, you need to submit a claim on the official website of the class action settlement administrator by the deadline, which is November 18. The hearing for the final approval of the agreement is scheduled for December 16.
Current or former Cash App customers who have suffered unauthorized access to their personal information or fraudulent withdrawals between August 23, 2018 and August 20, 2023, may be eligible. Some users will have received a personalized notice by mail or email, notifying them about their eligibility.
However, those who did not receive a notice can also file their claim by providing detailed information about their situation in the official settlement website.
The Possible Compensation of the Cash App Lawsuit
The compensation available through this agreement varies depending on the losses suffered by each individual, as well as the total number of claims filed. Those affected can receive payments for three types of claims: out-of-pocket expense losses, lost time and transaction losses.
With the proper documentation, users can receive up to $2,500 for out-of-pocket expense losses. In addition, users can be compensated with $25 per hour for lost time (with a limit of three hours) and additional relief for transaction losses.
However, the settlement administrator’s website notes that if there is not enough money in the net settlement fund to cover all approved claims, payments could be reduced proportionately based on each class member’s share of the claim.
Other Options for Those Affected by Cash App
If you do not want to participate in the agreement, you have the option to opt out of it before November 1. By opting out, you retain the right to sue separately or to become part of another related lawsuit against the defendants in the future. You also have the option to object to the settlement agreement by writing to the court by November 1.
On the other hand, if you choose to do nothing, you will not receive any payment and you may lose the right to file future lawsuits related to the claims covered by this agreement.
Data Protection in the Future
In an increasingly digitized world, it is difficult to completely prevent data breaches. However, there are steps consumers can take to protect their personal information.
One of the main recommendations is to create passwords that are difficult to guess and use multifactor authentication when possible. In addition, if you receive a notice about a data breach, it is advisable to change the password immediately and monitor the account activity for suspicious transactions.
Visiting the official website of the affected company to get reliable contact information is also a key measure, as scammers often try to take advantage of incidents like these to send emails or make phishing calls.