Block Inc. has been fined $255 million over AML and fraud failures on its Cash App platform, with penalties imposed by state regulators and the CFPB.

Block, Inc. faces violations of the Anti-Money Laundering and Bank Secrecy Act laws, according to officials.

The Consumer Financial Protection Bureau ordered Cash App owner Block to pay $175 million to address security failures.Block must refund consumers up to $120 million and pay a penalty of $55 million into the CFPB’s victims relief fund, according to a Thursday (Jan. 16) press release.“Block employed weak security protocols for Cash App and put its users at risk,” the release said. “While Block is required by law to investigate and resolve disputes about unauthorized transactions, the company’s investigations were woefully incomplete. Block directed users — who had suffered financial losses as a result of fraud — to ask their bank to attempt to reverse transactions, which Block would subsequently deny. Block also deployed a range of tactics to suppress Cash App users from seeking help, reducing its own costs.”Block said in a statement that it settled the case not because it agreed with the CFPB’s findings but because it wanted to be done with the matter.“The historical issues raised in this agreement do not reflect the Cash App experience today,” the company said in the statement. “We are committed to continually investing to ensure we uphold industry-leading standards.”Block now offers multiple points of contact, uses “advanced” detection systems to prevent fraud, and employs an artificial intelligence-powered “Payment Warnings” tool that alerts customers if their transaction may be part of a scam, the statement said.The news came one day after Block agreed to pay an $80 million fine and undertake corrective actions to resolve an enforcement action centering on Cash App and carried out by 48 state financial regulators.Those regulators alleged the company violated Bank Secrecy Act (BSA) and anti-money laundering (AML) laws