The recent settlement of a class action lawsuit could put some money in your pocket if you were or are a Cash App customer.
[Read: Best Online Banks.]
What Happened With Cash App?
Cash App and Block, its parent company, were the target of a class action lawsuit after two security breaches in 2021 and 2023. In the first breach, a former employee downloaded customer data without permission. The second breach involved an unauthorized user accessing accounts using customers’ phone numbers.
The payment app company was sued for failing to adequately protect its customers’ information. Without admitting wrongdoing, Cash App agreed to pay $15 million in damages and to improve the way it safeguards consumer information.
Who’s Eligible for Compensation?
With many class action payouts, anyone who did business with the company may be eligible for a payment. And the payment per person is generally small.
This isn’t one of those. To be eligible, your account must have been impacted by unauthorized access of personal information or fraudulent withdrawals between Aug. 23, 2018, and Aug. 20, 2024. And you must be able to document your losses.
[READ: The Best Payment Apps.]
How Much Will Be Paid?
The total settlement is $15 million. After attorney fees and other costs are deducted, the remaining amount will be paid to eligible customers who apply as required. If you qualify, you may be reimbursed for costs stemming from:
— Out-of-pocket losses (up to $2,500)
— Credit monitoring or identity theft insurance
— Obtaining a credit report
— Canceling and replacing a payment card
— Closing and opening bank accounts
— Miscellaneous expenses like postage, phone charges and express mail
— Unrefunded overdraft or overdraft protection fees
— Unrefunded late or missed payment fees
— Compensation for lost time ($25 per hour for up to three hours)
— Transaction losses
How to Get Compensation
You may receive an email or letter notifying you of your eligibility. But if you don’t, you can access and complete a claim form online
.
You’ll need to document your losses and submit your claim online or through the mail by Nov. 18, 2024. Submit only one claim per person, even if you have multiple Cash App accounts.
You can get your money on a prepaid Mastercard, via direct deposit to a bank account, through Venmo or Zelle or by a paper check. (Ironically, you can’t get it via Cash App.)
You also may opt out of the class action and file your own lawsuit. To do so, you must notify the court by Nov. 1.
[Read: Best Checking Accounts.]
Protect Yourself
The American Bankers Association recommends extreme caution when using payment apps like Cash App, Zelle, Venmo and others. Avoid clicking links within emails or dealing with people you don’t know when using the apps. Strong passwords, two-factor authentication, fraud alerts from your bank, credit monitoring and credit freezes can all help you avoid the inconvenience and cost of data breaches in the future.
More from U.S. News
IRS Delays Reporting Rules for Users of Venmo, Cash App and Other Payment Apps
How to Protect Against Identity Theft in College
Should You Use a Credit Monitoring Service?
How to Cash In on the Cash App Settlement originally appeared on usnews.com
