> ## Content Index
> Fetch the complete content index at: https://www.theglobalbanker.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# CFPB Orders Block to Pay Up to $175 Million Over Cash App Fraud Investigation Failures and EFTA Violations
- URL: https://www.theglobalbanker.com/cfpb-orders-block-cash-app-175-million-fraud-efta-violations/
- Published: 2025-01-16T15:02:00.000Z
- Updated: 2026-11-08T11:58:21.000Z
- Description: The CFPB has ordered Block to pay up to $175 million in consumer redress and penalties after finding Cash App failed to protect users from unauthorised transactions.
- Author: TGB Editorial Team
- Tags: Regulations, Americas, #archive

The Consumer Financial Protection Bureau issued an enforcement order against Block, Inc. on 16 January 2025, requiring the company to pay up to $175 million in total for failures in how its Cash App platform handled fraud and consumer complaints. The order mandates that Block pay at least $75 million and up to $120 million in refunds and redress to consumers harmed by the platform's conduct, alongside a $55 million civil money penalty paid to the bureau. The action follows findings that Block violated the Electronic Fund Transfer Act and Regulation E, its implementing rule.

The CFPB found that Block routinely failed to properly investigate reports of unauthorised transactions made through Cash App, did not provide provisional credits to customers during delayed investigations as required by law, and locked users out of their accounts for extended periods without adequate recourse. The CFPB said Block's weak security protocols put Cash App users at risk, noting that the app has more than 56 million accounts.

#### STATE REGULATORS' SETTLEMENT

On 15 January 2025 — one day before the CFPB order was issued — a coalition of state regulators separately ordered Block to pay $80 million for Bank Secrecy Act and anti-money laundering violations. That enforcement round addressed Cash App's financial crime compliance rather than its consumer protection practices. Taken together, the two sets of settlements bring Block's combined financial obligations to approximately $255 million.

Cash App, which began as a peer-to-peer money transfer tool, has expanded into services including direct deposits, a debit card product, and cryptocurrency trading. 

#### MANDATORY REFORMS TO CUSTOMER SERVICE AND DISPUTE HANDLING

The CFPB's order also imposes operational requirements on how Cash App handles customer complaints and fraud disputes. Block must establish a 24-hour live-person customer service capability. The company must also fully and properly investigate all reports of unauthorised transactions going forward, in line with the requirements of EFTA and Regulation E.