New York was one of 46 attorneys general who secured $45 million from Cash App owner Block. Here is what the New York deal actually does — and why users hoping for a check should look to a separate order, not this one.
What Is This About?
On July 8, 2026, New York Attorney General Letitia James and a bipartisan coalition of 45 other attorneys general announced a settlement with Block, Inc., the company behind Cash App, over how the payment app handled fraud. Under a consent judgment filed in the Supreme Court of the State of New York, County of New York, Block agreed to pay $45 million across the participating states and the District of Columbia and to make a series of operational changes to Cash App. New York's share of that payment is $1,602,435.34 in penalties, due within 30 days of the effective date.The attorneys general alleged that Block misled Cash App users about how safe their money was and failed to provide the fraud protection and dispute resolution it promised and that federal law requires. Block denies the allegations in the complaint and entered the judgment, in its words, solely to conclude the matter — it did not admit wrongdoing or liability.
What New York Alleged
According to the coalition's investigation, Block advertised Cash App in a way that falsely implied the app worked like a bank, with the same protections for customers' funds that banks provide. The states said Block claimed in its terms of service that it used "cutting edge" fraud-detection technology while it lacked a consistent fraud-detection system, and that it did not have a functioning fraud hotline for users to report scams.Investigators also alleged that Cash App accounts could be opened without a Social Security number or date of birth, with no limit on how many accounts one person could open — which the states said let a single bad actor run a whole network of scam accounts. Block made a particular push to reach unbanked and underbanked consumers by promoting direct deposit of paychecks and government benefits into Cash App, the coalition said, leaving users who relied on the app as their primary account especially exposed.
One detail featured prominently in New York's announcement: because Cash App had no phone number to call for support, users locked out of their accounts often searched online and reached fake customer-service numbers run by scammers posing as Cash App. Those scammers would then take over victims' accounts or drain their other financial accounts. The attorneys general alleged Block knew this was happening and did not warn users or set up a real phone line until 2021. All of these are allegations resolved through settlement — Block was not found liable and denies wrongdoing.
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"Cash App Fridays" and the Prize Scam
The investigation also focused on a social-media promotion called Cash App Fridays, which encouraged users to publicly post their unique Cash App identifier for a chance to win a weekly prize. The attorneys general alleged that fraudsters used those public posts to contact users, tell them they had won, and trick them into handing over their login information. According to the coalition, Block was aware of these scams — and trained staff to expect defrauded customers to contact them — but kept running the promotion.Do New York Cash App Users Get Money?
Not from this settlement directly. New York's $1.6 million is a penalty paid to the state, and the multistate deal created no restitution fund or claim form for users.The consumer money behind the "users could get money back" headlines is the separate redress Block already owes under its January 2025 consent order with the Consumer Financial Protection Bureau: between $75 million and $120 million distributed to eligible consumers nationwide, generally people whose unauthorized-transaction disputes went uninvestigated or unreimbursed. That distribution is underway — the administrator began mailing checks in batches on June 8, 2026, and recipients are identified automatically, so there is nothing to file. The multistate settlement reinforces that commitment, with the states monitoring the distribution. For the payment details, see our national report on the $45 million Cash App multistate settlement, plus our coverage of the Cash App CFPB settlement checks now mailing and the Cash App payment timeline.
What Block Must Change
Beyond the payment, the consent judgment requires Block to make operational reforms to Cash App:- Maintain live 24-hour customer support, with a human reachable by phone at least 13.5 hours a day and live chat available at least 18 hours a day.
- Investigate and resolve unauthorized-transaction disputes as the Electronic Fund Transfer Act and Regulation E require, including providing a provisional credit within 10 business days when an investigation is not yet complete.
- Stop making false or misleading claims about Cash App's safety, and stop marketing practices Block knows have increased fraud on the platform.
- Directly educate consumers about common types of fraud, and display clear fraud warnings when a transfer looks like it may be fraudulently induced.
- Promptly notify users about account locks, suspensions, and deactivations, and tell them how to access their funds and address the restriction.
Most of these injunctive requirements last five years from the effective date; the consumer-education obligation runs for seven.
New York's Record on Payment-App and Online Fraud
The Cash App consent judgment is the latest in a series of New York enforcement actions targeting online scams and payment platforms. In August 2025, Attorney General James sued the company behind Zelle over allegations it enabled widespread fraud. In June 2025, her office moved to stop a crypto scam targeting Russian-speaking New Yorkers, and in January 2025 it became the first regulator to serve legal notice by depositing a non-fungible token into wallets used by scammers. In June 2024, the office sued cryptocurrency company NovaTechFx over an alleged pyramid scheme said to have defrauded investors worldwide, including thousands of New Yorkers. For New York, the Cash App matter was handled by the Bureau of Internet and Technology, part of the Division for Economic Justice.Read the New York Consent Judgment
The full consent judgment filed in the Supreme Court of the State of New York is embedded below.Frequently Asked Questions
How much does New York get from the Cash App settlement?
Block will pay $1,602,435.34 in penalties directly to New York. That is New York's share of the $45 million Block agreed to pay across the 46 participating attorneys general and the District of Columbia. The New York payment is due within 30 days of the July 8, 2026 effective date.
Do New York Cash App users get money from this settlement?
Not from this settlement directly. New York's $1.6 million is a penalty paid to the state, and the multistate deal created no new claim form. The consumer money behind the headlines is the separate $75 million to $120 million redress Block must distribute under its January 2025 CFPB consent order — the administrator began mailing those checks in batches on June 8, 2026, to recipients it identifies, with nothing to file.
What did New York accuse Cash App of doing?
Attorney General James alleged that Block misled Cash App users with marketing that implied the app worked like a bank, claimed to use cutting-edge fraud detection it did not consistently have, offered no working fraud hotline or live phone support until 2021, let users open unlimited accounts with minimal identity checks, and failed to investigate unauthorized transactions or issue refunds as the Electronic Fund Transfer Act and Regulation E require. Block denies wrongdoing and did not admit liability.
What was Cash App Fridays and why is it in the settlement?
Cash App Fridays was a social-media promotion that encouraged users to publicly post their unique Cash App identifier for a chance to win a weekly prize. The attorneys general alleged fraudsters used those posts to contact users, falsely tell them they had won, and trick them into handing over login credentials. Investigators said Block knew about the scams but kept running the promotion.
Which court is the New York Cash App settlement filed in?
New York's consent judgment was filed in the Supreme Court of the State of New York, County of New York, in People of the State of New York v. Block, Inc. f/k/a Square, Inc. The effective date is July 8, 2026. Block entered the judgment without admitting the allegations in the complaint.
Sources
• New York Attorney General — press release (July 8, 2026)• People of the State of New York v. Block, Inc. — Consent Judgment (PDF)
• Oregon DOJ — AG Rayfield announces $45M multistate settlement (July 8, 2026)
• CFPB — Block, Inc. consent order (January 2025)
