Services such as e-banking and online payments have made everyday life easier for people, but digitization at such a pace has also exposed them to data leaks. Following two such data and security breach incidents, users of Cash App are eligible for up to $2,500 in reimbursements, but they need to hurry up as the deadline is getting closer. Earlier this year, the mobile payment service was ordered to pay $15 million in damages to its users as a part of the settlement in the case. Eligible users only have a few weeks now to get their share of the money.
Why is Cash App Having to Pay up?
Cash App admitted that it suffered two different data breaches back in 2021 and 2023. In the first incident, which was reported in 2022, a former employee of the company gained access to the database and downloaded user transaction reports. In the second reported incident, another unauthorized worker gained access to the systems and accessed Cash App accounts of users through their phone numbers that were linked to the accounts.
Following the disclosures, plantiffs sued Cash App Investing and Block Inc. for the companies' "failure to exercise reasonable care in securing and safeguarding consumer information," as per USA Today. The class action lawsuit alleged that Cash App was negligent in handling the data breaches and failed to properly address the concerns of its customers.
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While Cash App and Block denied any wrongdoing, they agreed to settle the case and pay $15 million to the affected customers. This was in addition to the legal costs, which customers who submit eligible claims will be reimbursed for.
In a 2022 filing with the U.S. Securities and Exchange Commision, Block said that it was notifying about 8.2 million current and former users about the breaches and the settlement.
Who is Eligible for a Reimbursement?
As per the settlement website, users of Cash App and/or Cash App Investing, whose accounts were accessed without their permission, are eligible to file a claim. Those impacted by fraudulent withdrawals or transfers between August 23, 2018, and August 20, 2024, can file for up to $2,500 as reimbursement.
What Does the Settlement Cover?
The settlement covers out-of-pocket losses that customers suffered due to the data breach. Those who lost time because of it can file a claim as well at a rate of $25 per hour.
Furthermore, any user who suffered monetary losses due to the transactions and has not been reimbursed, can file a claim for the same. Everyone and anyone who submits a claim will need to provide “third-party documentation” that connects their Cash App or Cash App Investing account to “a data security incident, unauthorized account event, or deficiency in error resolution”, according to the website. Users with multiple accounts are required to file only one claim for all the losses incurred.
Where to File and What's the Deadline?
Cash App users can submit a completed claim form on the dedicated website cashappsecuritysettlement.com before the official deadline of November 18. The website lists December 16 as the date for the final approval hearing for the case.
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