CFPB fines Cash App $175M

Peer-to-peer payments app Cash App is being ordered by the Consumer Financial Protection Bureau to pay $175 million in refunds and fines for fraud-detection failures. Cash App, owned by parent company Block , is required to investigate and resolve disputes on its platform, which it failed to do, according to a CFPB release today. “Cash App created the conditions for fraud to proliferate on its popular payment platform,” CFPB Director Rohit Chopra said. “When things went wrong, Cash App flouted its responsibilities and even burdened local banks with problems that the company caused.” The $175 million fine includes $120 million to be refunded to customers and $55 million to be paid to the CFPB’s victim relief fund, according to the CFPB announcement. The fine comes on the heels of a Jan. 15 order by state regulators in Arkansas, California, Massachusetts, Florida, Maine, Texas and Washington, that Block must pay $80 million for violations of anti-money laundering law. In addition to the fines, Cash App is also ordered to implement a 24-hour, live-person customer service department to ensure agents are accessible by consumers. While Cash App will pay the fine and implement a contact center, it will also use AI and machine learning models to detect and reduce fraud within the platform, according to a Block release shared with Bank Automation News today. Cash App is the latest in a string of companies at to experience a CFPB crackdown: This week, CFPB announced it was suing Capital One ; and In December, the CFPB filed a lawsuit against Early Warning Services , Bank of America , JPMorgan Chase and Wells Fargo . Register here by Jan. 17 for early-bird pricing for Bank Automation Summit 2025, taking place March 3-4 in Nashville, Tenn. View the full event agenda here .

CFPB fines Cash App $175M

State regulators also ordered parent company Block to pay $80M

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CFPB fines Cash App $175M

State regulators also ordered parent company Block to pay $80M

Citi arms 30K developers with AI tools

Amex to pay $230M over misleading sales practices

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