ATLANTA — Cash App is being ordered to pay back tens of millions of dollars to customers who were victims of scams on the money-sharing app.
Cash App will have to pay up to $120 million to customers who lost money to scammers and fraud on the money-sharing app.
An order from the Consumer Financial Protection Bureau obtained by Channel 2 consumer investigator Justin Gray showed that Cash App knew about the criminal activity on the app but did not take the necessary steps to protect against it or refund customers.
It was often the last line in Cash App fraud stories Channel 2 Action News has reported over the years: Cash App closed the case without repaying the money.
That’s what happened in 2024 when $1,000 disappeared from Napoleon Fielder’s Cash App account.
“They put the money there, turned right back around and took it out,” Fielder said.
Fayetteville resident Rebecca Mack was trying to sell a doll house on an online marketplace when more than $650 was stolen from her Cash App account.
Cash App also closed that case without repaying the money.
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“It’s devastating to have that much money taken away at this point in our lives,” Mack said.
Now, federal regulators at the Consumer Financial Protection Bureau are requiring Cash App to pay back tens of millions of dollars to thousands of consumers.
CFPB said in the order that Cash App’s “failure to take timely, appropriate, and effective measures to prevent, detect, limit, and address fraud on the Cash App platform caused or was likely to cause substantial injury.”
“Consumers have been very seriously harmed through Cash App without any, you know, redress, any relief directly from the company for a long, long time,” said Liz Coyle, executive director of the consumer advocacy group Georgia Watch.
The order requires Cash App to pay a $55 million penalty and set up a fund to repay consumers up to $120 million.
“Consumers can finally start to get some of their money back, that many of them have been trying to get back for years,” Coyle said.
In a statement, Cash App said:
“While we strongly disagree with the CFPB’s mischaracterizations, we made the decision to settle this matter in the interest of putting it behind us and focusing on what’s best for our customers and our business. The historical issues raised in this agreement do not reflect the Cash App experience today.”
Along with having to pay back customers up to $120 million Cash App is also required by this order to set up 24-hour, live-person customer service.
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