BATON ROUGE — Louisiana Attorney General Liz Murrill announced a multistate settlement with Block, Inc., the company behind Cash App, over allegations the company failed to protect users from fraud.

Louisiana will receive $557,086.81 from the $45 million settlement, the AG's Office said. The agreement also reaffirms Block's commitment to pay between $75 million and $120 million to consumers nationwide through a separate settlement with the Consumer Financial Protection Bureau.

The settlement stems from allegations that Block misled consumers about Cash App's safety, failed to protect users from fraud and didn't provide the fraud protection it promised or was required by law to.

"Companies that handle people's money have a responsibility to protect their customers and follow the law," Murrill said. 

According to the AG's Office, Block inaccurately led Cash App users to believe their money was protected by the same safeguards that banks have. At the same time, the AG said, Block knew fraud on its platform was rising sharply and continued marketing the app instead of warning users or strengthening protections.

Block also actively promoted direct deposits of paychecks and government benefits into Cash App and targeted users who often relied on Cash App as their primary financial account, making them especially vulnerable to fraud, Murrill's office said.

Murrill added that Block's sign-up processes were designed to be fast with minimal identity verification, making it easy for fraudsters to create accounts.

For years, Cash App had no phone support, so users who needed help could only message through the app or on social media, the AG's Office said. People who searched online for a phone number often ended up calling fake numbers run by scammers posing as Cash App, who would then take over accounts or drain users' other financial accounts. According to the settlement, Block knew this was happening and didn't warn users or set up a real phone line until years later.

Block also ran a social media promotion called Cash App Fridays, encouraging users to publicly post their unique Cash App identifier for a chance to win a weekly prize. According to Murrill, fraudsters would then contact those users, claim they had won and trick them into handing over their login information. Block knew about these scams but kept running the promotion anyway, Murrill said. 

Users who experienced automated account locks were frequently locked out of their accounts for weeks without a way to access their money. Victims of fraud were often left with no recourse because delays made it impossible to recover stolen money and because Block failed to investigate unauthorized transactions or issue refunds when required by law.

Under the settlement, Block agreed to maintain customer support that can resolve fraud complaints and account lockouts. The company must offer live support 24 hours a day, with a human available by phone at least 13.5 hours a day and by live chat at least 18 hours a day.

Block must also stop making false or misleading claims about Cash App's safety, discontinue marketing practices known to increase fraud and directly educate consumers about common types of fraud. The company is also required to fulfill its legal obligations to investigate fraud claims and reimburse users for unauthorized transactions.