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Michigan joins $45 million settlement accusing Cash App of weak fraud controls: "Customer safety should always be a top priority" July 12, 2026 2 min. read Lansing, Michigan - Cash App built its reputation on speed. Money could move in seconds, paychecks could land directly in an account, and users without traditional banking relationships had a simple way to manage daily finances. But regulators say that convenience came with gaps that left consumers exposed when fraud struck. Now Block, Inc., the company behind Cash App, has agreed to a $45 million multistate settlement over allegations that it misled users about the app's safety, failed to prevent fraud and did not provide customer support and refunds required by law. Michigan Attorney General Dana Nessel announced the agreement, under which Michigan will receive $936,540. The settlement also requires Block to strengthen fraud protections, improve live customer service and stop making misleading claims about how Cash App protects users. "Customer safety should always be a top priority, and when a company misleads and fails to protect its users from fraud, it must be held accountable," Nessel said. Discover more Courts & Judiciary Vehicle & Traffic Safety "This settlement requires Cash App to maintain strong safeguards for consumers and commits the company to putting stolen money back into the pockets of Michigan residents." According to the states, Block promoted Cash App in ways that suggested users' money carried protections similar to those offered by a bank. Regulators said that impression was not accurate. At the same time, fraud on the platform was rising, yet the company continued marketing direct deposits for wages and government benefits. That outreach targeted unbanked and underbanked consumers, many of whom used Cash App as their main financial account. Regulators alleged that Block expanded rapidly without building enough support for customers who lost access to accounts or reported unauthorized transactions. Discover more Geographic Reference Mobile Apps & Add-Ons Several features also created openings for scammers. Cash App's quick sign-up system used limited identity verification, making it easier for fraudsters to open accounts. For years, users had no official phone support and often searched online for help. Some reached fake customer service numbers operated by scammers who then took control of accounts or accessed other financial information. The company also ran its Cash App Fridays promotion, encouraging people to post their public $cashtag for a chance to win prizes. Fraudsters used those posts to contact users, falsely claim they had won and trick them into sharing login details. Regulators said Block knew about the scams but continued the promotion for years. Consumers also reported being locked out after automated security systems flagged transactions. Some waited weeks to regain access to their money. Fraud victims were sometimes left without reimbursement because investigations were delayed, unauthorized transactions were not properly reviewed or refunds were not issued when required. Under the settlement, Cash App must maintain customer support capable of handling fraud complaints and account lockouts. Live support must be available around the clock, with human phone assistance for at least 13.5 hours each day and live chat for at least 18 hours. Block must also educate users about common scams, end marketing practices known to increase fraud, investigate complaints properly and reimburse consumers for unauthorized transactions when legally required. The agreement further reaffirms Block's commitment to distribute between $75 million and $120 million to consumers nationwide through a separate settlement with the Consumer Financial Protection Bureau. Together, the actions put pressure on Cash App to match its promise of easy money movement with stronger protection when something goes wrong.

Snapchat owner cuts 1,000 jobs as says AI will reduce repetitive work. 1 hour ago Kali HaysTechnology reporter Snap is the latest tech company to cut jobs, citing the growing ability of artificial intelligence (AI) tools. The Snapchat owner has axed about 1,000 employees - 16% of staff - and withdrawn hundreds of open job roles, according to a financial disclosure. Evan Spiegel, Snap's co-founder and CEO, told employees the company was in "a crucible moment" and the goal of the cuts was to reduce yearly costs by $500m (£368m). Spiegel said that workers who remain at the company will be using AI tools to "reduce repetitive work and increase velocity," as "small squads" of employees have been doing in recent months. "Change of this magnitude and at this speed is never easy and it will not be seamless," Spiegel added in his memo. This cut at Snap marks at least the third larger scale layoff at the company since 2022, when it conducted its first major layoff which impacted 20% of its staff at the time. Spiegel's comments on Wednesday are the first time he has pointed to AI as an explanation for staffing decisions. This year, activist investor Irenic Capital Management took a stake in Snap, saying in a public letter to Spiegel that it was "strange" the company remained unprofitable after 15 years in business and with hundreds of millions of monthly users. Irenic noted that an investor who put $1 into Snap when it went public in 2017 would be left with a stake worth only 23 cents today. An activist investor is a person or investment firm that buys shares in a company it believes is underperforming and then applies pressure for management and business changes. Snap now requires "a new way of working that is faster and more efficient, while pivoting towards profitable growth", Spiegel wrote in his memo to staff. His explanation echoed that of other tech executives this year who have begun citing the increased capability of AI technology, mainly tools that help software engineers do coding work, as they order their own mass job cuts. Already this year Amazon, Meta, Block, Pinterest and Atlassian, among others, have collectively laid off several thousand workers. Company executives have either pointed to increased use of AI tools meaning they need fewer workers, or noted that plans to spend hundreds of billions of dollars a year on investing in AI requires cost-cutting in other parts of the company. Jack Dorsey, the CEO of Block and the former leader of Twitter, said at the end of February that the rise of AI tools for tech workers "fundamentally changes what it means to build and run a company". He also said people in the industry should expect further job cuts at "the majority of companies" over the next year.