The Cash App Class Action Settlement has brought digital wallet security under scrutiny, highlighting critical vulnerabilities in user data protection. The settlement stems from allegations of inadequate safeguards and delayed responses to fraud.
Breaches Lead to Legal Action
The case was sparked by two significant data breaches. A former Cash App employee had unauthorized access to private customer data in 2022. The next year, hackers gained access to accounts by using associated phone numbers. Serious questions concerning the platform's data security protocols were raised by these instances. Strong protocols, according to impacted users, may have avoided the breaches. Additionally, they blasted Cash App for taking too long to handle fraudulent transactions.
Settlement Details
The settlement specifies conditions of compensation for impacted users and is currently pending judicial approval. Up to $2,500 might be awarded to claimants in light of their monetary losses. Proof of fraudulent transactions or illegal access between August 23, 2018, and August 20, 2024, was necessary for eligibility. The teleconference for the final hearing is set on January 13, 2025. If no appeals cause the process to be delayed, payments are anticipated to start in late 2025 or early 2026.
