by VDC Staff

Vermont will receive approximately $1.3 million as part of a $45 million multistate settlement with Block Inc., the company behind Cash App, over allegations the payment platform misled consumers about its fraud protections and failed to adequately safeguard users, Attorney General Charity Clark announced Wednesday.

Clark said her office played a lead role in the investigation, which found Block promoted Cash App as a safe alternative to traditional banking while failing to prevent rising fraud, provide timely customer support, or properly investigate unauthorized transactions.

 “Big tech companies cannot mislead customers and cut corners on security and customer service to advance their bottom line,” Clark said.

Under the settlement, Block must improve fraud prevention, maintain expanded live customer support, stop misleading safety claims, educate users about common scams, and comply with legal requirements to investigate fraud complaints and reimburse eligible customers. The agreement also reinforces a separate federal settlement requiring between $75 million and $120 million in compensation for consumers nationwide affected by Cash App fraud.