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Nebraska Attorney General Mike Hilgers on Wednesday announced a $45 million multistate settlement with Block Inc. – the company behind Cash App. Hilgers joined 45 other states in a settlement resolving allegations that Block misled consumers about Cash App's safety and failed to provide the fraud protection and dispute resolution the law required.
Nebraska's share of the settlement is $379,619.99, according to the attorney general’s office.
The state's complaint alleges Block let users create "restricted" accounts with just a phone number or email address, without providing a date of birth or Social Security number, and placed no limit on how many restricted accounts a single user could open. That combination, state attorneys say, allowed bad actors to run multiple accounts and move substantial sums of money through the platform.
The complaint also alleges Block marketed Cash App as offering safety protections comparable to a traditional bank, despite Cash App not being a bank and not subject to the same safety requirements. According to the complaint, Block knew it lacked a consistent approach to fraud detection at the time and was more focused on minimizing chargebacks and growing its user base than on keeping fraudsters off the platform.
On the question of FDIC insurance, the complaint says that from November 2022 to December 2023, Cash App's "Bank" webpage told users their Cash Card balance was "FDIC-insured through our partner banks, which means the federal government promises to protect it." In December 2023, Block moved similar language to the site's "Security" page, this time adding an asterisk pointing to smaller print disclosing that Cash App is "a financial services platform, not a bank." State attorneys say pass-through FDIC insurance applies only if the partner bank fails — not Cash App — and that the more prominent claims misled users into believing their money carried bank-level protection.
The complaint also faulted Block for not offering live phone support for years, despite listing a customer service number on Cash App debit cards and in its terms of service. Callers instead reached a recorded message directing them to the app. The complaint says Block was aware by October 2018 that the lack of phone support was creating opportunities for fraud. State attorneys say scammers exploited the gap by setting up fake 1-800 numbers that mimicked Cash App support, which became the most common form of account takeover reported by users.
A related issue involved "Cash App Fridays," a social media promotion that asked users to publicly post their “$cashtag” for a chance to win a cash prize. The complaint alleges scammers used the public posts to pose as Cash App and steal login credentials, and that Block knew the promotion was tied to increased fraud by 2019 but continued running it for years.
The complaint further alleged that when Block locked, suspended or deactivated accounts in error — often while trying to stop suspected bad actors — it frequently gave innocent users no explanation or timeline for resolution, leaving some without access to their money for days or weeks.
The judgment states that Block denies any wrongdoing and that the settlement does not constitute an admission of liability.
According to Hilgers' office, the agreement also reaffirms a separate settlement with the Consumer Financial Protection Bureau under which Block is expected to pay between $75 million and $120 million in consumer redress nationwide.
Under the settlement, Block is required to:
- Maintain live customer 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.
- Investigate fraud complaints under set timelines, including a written response within three business days of completing an investigation and a provisional credit within 10 business days if the investigation isn't finished by then.
- Notify users when their accounts are locked, suspended, or deactivated, and explain how to resolve the issue.
- Stop marketing practices Block knows have led to increased fraud.
- Provide direct consumer education about common types of fraud on the platform.
- Designate a point of contact for the Nebraska Attorney General's office within 30 days.