If you have used Square or Cash App services in recent years, you may be eligible for a portion of a $15 million class action settlement. This legal resolution follows concerns regarding data security and unauthorized account access that impacted millions of users. Understanding how to navigate the claim process is the first step toward receiving the compensation you may be owed.
Data breaches can be stressful and confusing, often leaving users worried about their personal information and financial security. This guide provides a straightforward explanation of the settlement, who is eligible to participate, and the specific steps you need to take to file a claim before the deadline.
Understanding the Square and Cash App Settlement
The settlement stems from lawsuits filed against Block, Inc. (the parent company of Square) and Cash App Investing. The litigation alleged that these companies failed to implement adequate security measures to protect user data. Specifically, two major incidents were at the center of the dispute.
The first incident occurred in 2021 when a former employee accessed sensitive customer reports without authorization. The second incident involved a technical error in 2023 that allowed some users to view information belonging to other accounts. While the companies have not admitted to any wrongdoing, they agreed to the $15 million settlement to resolve the legal claims and provide relief to affected customers.
Who Qualifies for a Settlement Payment?
Eligibility for this settlement is based on your history as a user of Square or Cash App and whether your account was impacted by the security incidents mentioned in the lawsuit. Generally, you are considered a class member if you fall into the following categories.
General Eligibility Criteria
- Account Holders: You must be a current or former customer of Square or Cash App.
- Timeframe: Your personal information or account must have been accessed or impacted between August 23, 2018, and the present.
- Security Impact: You experienced an unauthorized or fraudulent transaction, or your personal data was involved in the specific data security incidents identified by the court.
If you received an email or a physical notice regarding this settlement, you are likely a confirmed class member. This notice usually contains a unique “Notice ID” and “Confirmation Code,” which makes the filing process much faster.
Types of Compensation You Can Receive
The settlement is designed to reimburse users for various types of losses. Depending on your situation, you may be eligible for one or more of the following payment categories. It is important to keep records of any financial losses you experienced to maximize your claim value.
Out-of-Pocket Expenses
If the data breach caused you to spend money that you otherwise wouldn’t have, you can claim reimbursement for out-of-pocket expenses. This includes costs related to credit monitoring services, bank fees, or even professional fees paid to accountants or lawyers to resolve identity theft issues. You can claim up to $2,500 for these documented losses.
Compensation for Lost Time
The settlement recognizes that dealing with a security breach takes time. If you spent hours monitoring your credit, talking to bank representatives, or resolving fraudulent charges, you can claim compensation for that time. Typically, you can claim a set hourly rate (often around $25 per hour) for up to three hours of lost time, even without extensive documentation.
Reimbursement for Transaction Losses
If you suffered a direct financial loss due to an unauthorized transaction on your Cash App or Square account that was never refunded, you may be eligible for reimbursement. This is a critical category for users who were victims of fraud directly linked to the security vulnerabilities mentioned in the lawsuit.
How to File a Claim Step-by-Step
Filing a claim is a relatively simple process, but it must be done accurately to ensure you receive your payment. Follow these steps to complete your submission through the official settlement channels.
1. Gather Your Information
Before starting, collect any documentation related to your account. This includes the notice you received in the mail or email, records of unauthorized transactions, and any receipts for expenses you incurred because of the breach. Having these ready will prevent the online form from timing out.
2. Access the Official Claim Form
Visit the official settlement website designated by the court. Avoid using third-party sites that ask for a fee to file your claim; the official process is always free. Use your Notice ID and Confirmation Code to log in if you have them. If you do not have a code, you can still file a claim by providing your contact information and account details.
3. Select Your Claim Category
The form will ask which types of losses you are claiming. Be honest and provide as much detail as possible. If you are claiming out-of-pocket expenses, you will need to upload digital copies of your receipts or bank statements. Ensure the files are clear and readable.
4. Choose Your Payment Method
Most modern settlements allow you to choose how you want to receive your money. Options usually include a physical check, a direct deposit to your bank account, or a digital payment through services like PayPal or Venmo. Double-check your account numbers to ensure the funds reach you safely.
5. Submit and Save Your Confirmation
After reviewing your information, submit the claim. You should receive a confirmation number immediately. Save this number or print the confirmation page. It is your only proof that you filed the claim should any issues arise during the processing period.
Important Deadlines to Remember
Class action settlements have strict timelines. If you miss the deadline, you forfeit your right to receive a payment or to sue the company individually for these specific issues in the future. For the Square and Cash App settlement, the primary deadline to file a claim is November 18, 2024.
There are also deadlines for those who wish to “opt-out” of the settlement. Opting out means you choose not to participate in this settlement so that you can retain your right to file your own separate lawsuit. If you do nothing, you will not receive a payment and you will lose your right to sue.
What Happens After You File?
Once the claim deadline passes, the settlement administrator will review all submissions for validity. This process can take several months. A final fairness hearing is usually held where a judge gives the final approval to distribute the funds. If there are no appeals, payments are typically sent out within 60 to 90 days after final approval.
Be patient during this time. You can usually check the status of the settlement on the official website to see if the distribution phase has begun. Avoid contacting Square or Cash App customer support about the settlement, as they do not manage the payout process.
Protecting Your Digital Accounts
While settlements provide financial relief after a breach, taking proactive steps to secure your accounts is essential for the future. Data security is an ongoing responsibility for both companies and users.
- Enable Two-Factor Authentication (2FA): Always use 2FA on financial apps. This requires a second form of verification, such as a code sent to your phone, before anyone can log in.
- Monitor Your Statements: Review your transaction history at least once a week. Early detection of a fraudulent charge makes it much easier to recover your funds.
- Use Strong, Unique Passwords: Never reuse the same password across different financial platforms. Use a password manager to keep track of complex, unique passwords.
- Be Wary of Phishing: Scammers often use data breaches as an opportunity to send fake emails. Only trust communications that come from official, verified domains.
By staying informed and taking the necessary steps to file your claim, you can ensure that you are compensated for any disruptions caused by these security incidents. Taking action now helps hold companies accountable and protects your financial well-being in the long run.