Some Users Can Now Claim More Than $2,500

If you are (or were) a Cash App user in the last six years, you might be eligible for a $2,500 settlement.

According to Cash App’s website, users who experienced unauthorized withdrawals or transfers from their Cash App accounts could be eligible for a settlement, so long as they had an account between Aug. 23, 2018, and Aug. 20, 2024.

The settlement is part of a $15 million class-action lawsuit that holds Cash App responsible for two major data breaches that drained some users’ brokerage accounts. If you were involved in this data breach, submit a completed Claim Form no later than Nov. 18, 2024, to get your payment.

Wait, back up — what happened to Cash App?

In 2022, a former Cash App employee managed to access account data without permission. As if that wasn’t bad enough, the company then had an unauthorized user, access accounts in 2023 through recycled phone numbers that were linked to the accounts.

Who’s eligible for the $2,500 settlement?

Not everyone who used Cash App over the last six years will be eligible for a $2,500 settlement. You should only file a claim if you experienced out-of-pocket losses connected to the data breaches.

In addition to out-of-pocket losses, Cash App users who were affected by the breaches can get reimbursed for lost time and transaction losses. You can submit a lost time reimbursement for up to three hours at a rate of $25. The transaction losses could include reimbursement for credit monitoring, identity theft insurance, overdraft fees, account closure fees, and other costs connected to the data breaches.

It’s important to note that no payment amount has been finalized. Cash App says that if there’s not enough money in the net settlement amount ($15 million) to pay every approved claim, then the payments will be distributed on a pro-rata basis.

Should I stop using Cash App?

No, this doesn’t mean you should stop using Cash App. But it doesn’t hurt to exercise caution as a Cash App user.

Keep in mind that money stored in the Cash App account isn’t FDIC-insured unless you have a Cash Card. As long as you have this debit card, money held in your account is FDIC-insured up to $250,000.

Even so, it’s prudent to regularly move money from your Cash App account to an account with potentially stronger security, like a checking account at a bank. Although these accounts may not be completely invulnerable to cyberattacks, their security track record may be more comforting than Cash App’s.

For better or worse, Cash App has transformed how we pay each other. It makes payments convenient, even if that convenience isn’t always free. If you think you’ve been a victim of the data breaches, file your claim before the Nov. 18, 2024 deadline.

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