Block to Pay $175 Million for Cash App Customer Service Failures

Jack Dorsey’s Block Inc. will pay up to $175 million for failing to investigate and protect Cash App customers from fraudulent transactions under a settlement with the Consumer Financial Protection Bureau.

Oakland, Calif.-based Block put weak security protocols on its Cash App digital payment service and conducted incomplete investigations when customers reported fraud, the CFPB said in a Thursday consent order.

Block and Cash App instructed customers to contact their banks to reverse fraudulent transactions, but in many instances blocked the banks from doing so, the CFPB said.

“When things went wrong, Cash App flouted its responsibilities and even burdened ...