In today’s digital age, using mobile apps to send and receive money has become commonplace. Cash App is the most popular payment platform, with millions of users, especially in the United States. But as convenience increases, so too do data security and privacy risks. This is why Cash App faced two major lawsuits in 2025—and now the company is willing to pay approximately $28 million in compensation.
Both lawsuits are for users whose data was compromised or who were sent spam text messages without their consent. If you also use Cash App, this information is crucial, as you may be eligible for compensation from this settlement.
Cash App Lawsuits: What’s the Case?
Cash App and its parent company, Block Inc., were accused of two different types of allegations.
1. Allegations of Negligence in Data Security
The first lawsuit was filed on behalf of users who complained that Cash App did not protect their personal information. Between 2018 and 2024, numerous users reported unauthorized access to their accounts; some had their money stolen, and many had their accounts hacked.
The victims alleged that the company had not implemented proper cybersecurity measures, allowing hackers to access their accounts and personal data. This lawsuit forced Cash App to answer in court about what steps it took to protect its users.
2. Text Messages Sent Without Consent
The second lawsuit focused on Cash App’s spam text messaging policy. The company sent referral links to people under its “Invite Friends” program to attract new users to the app. However, many of these messages were sent to people who had never given their consent, particularly those living in Washington state.
This violated the US Telephone Consumer Protection Act (TCPA) and the Washington Consumer Protection Law. Under these laws, no company is allowed to send promotional messages without consumers’ permission.
Settlement Amount and Status of the Lawsuit
Cash App has agreed to pay a total of over $27.5 million to settle these two lawsuits. This includes:
- $15 million—for users affected by the data breach and account fraud
- $12.5 million—for users who received spam text messages without permission
Timeframe and Status of the Lawsuit
- Data Breach Settlement: Covers cases that occurred between August 23, 2018, and August 20, 2024. The court approved this settlement in January 2025.
- Spam Text Settlement: Effective from November 14, 2019, until a final judicial order. The final hearing on this matter will be held on December 2, 2025.
Following both cases, the process of filing claims and receiving payments for those affected will begin.
Who is eligible for a payout?
1. Data Breach and Fraud Settlement
If you used Cash App or Cash App Investing between August 2018 and August 2024 and your account experienced any unauthorized transactions, fraudulent activity, or login abuse, you may be eligible.
You must meet the following conditions:
- Be an active Cash App user during that period.
- Be able to prove any unauthorized transactions or data breaches on your account.
- File a valid claim before November 18, 2024.
Eligible users can receive a payout of up to $2,500. This includes compensation for not only monetary loss but also time and hassle.
2. Spam Text Message Settlement
If you live in Washington state and received an unauthorized “Invite Friends” text message from Cash App, you fall into this category.
The compensation amount in this case will range from $88 to $147, depending on how many people have filed valid claims.
Settlement Process: What’s Next
Data Breach Settlement Process
- The deadline for filing claims in this case has now passed. The court-appointed settlement administrator is now examining all claims.
- This process could take several months as each claim is investigated and verified. Payments are expected to begin by the end of 2025.
Spam Text Settlement Process
- The final hearing in this case will be held on December 2, 2025. If the court approves the settlement, an official website will be launched where eligible users can file their claims online.
- Once the application process begins, eligible individuals may receive payments within a few months.
Notes and Precautions
Legal experts say that class action settlements take time. Georgetown University professor Dr. Rachel Kim says:
“Even if the court approves, the claim verification process is lengthy. Each person’s identity, data, and eligibility are verified, which can take several months for payment to be processed.”
She also warns to be wary of fake websites and email links during this time. Many scammers take advantage of this opportunity by creating fake “Cash App Settlement” websites to try to trick people into giving them personal information or money.
Advice: Always seek information only from the official settlement website and don’t click on any suspicious links.
Why this case matters
The Cash App Settlement is not just a legal matter; it’s a symbol of consumer protection in the digital age. Today, millions of people rely on mobile payment apps—like Cash App, Venmo, PayPal, and Zelle—for their everyday financial needs.
But when companies don’t respect their users’ privacy and security, the consequences can be serious. This case demonstrates that consumers are now more aware of their rights than ever before.
According to the Federal Trade Commission (FTC), complaints related to digital payments have increased by more than 70% in the last three years. The lawsuit against Cash App and the subsequent settlement clearly demonstrate that companies must strengthen their data security systems.
What are the lessons learned for the future?
- For consumers: Increase the security of your online accounts. Use two-factor security (2FA) and avoid clicking on suspicious links or messages.
- For companies: Avoid sending promotional messages without users’ consent and prioritize data security.
- For the financial sector: This case exemplifies how fintech companies are increasingly held accountable and regulatory authorities are now more vigilant than ever before.
Conclusion: What the Cash App Settlement Means for You
If you are a Cash App user, this settlement could be an opportunity for financial relief. Claims for the data breach case have already been filed and are under review, while applications for the spam text settlement will begin after December 2025.
In the meantime, you should monitor the official website and avoid any unauthorized sources.
This lawsuit proves that even large companies are accountable, and the law will hold them accountable if they fail to protect consumers.
FAQs
Q. Who is eligible for the Cash App Settlement 2025?
A. Users who had Cash App accounts between August 2018 and August 2024 or received spam text messages between November 2019 and 2024 may qualify.
Q. How much money can users receive from the settlement?
A. Eligible users may receive up to $2,500 for the data breach settlement and between $88 and $147 for the spam text settlement.
Q. What is the deadline to file a claim?
A. The claim deadline for the data breach case was November 18, 2024. The spam text settlement will open for claims once it’s approved in December 2025.
Q. When will payments be sent out?
A. Payments are expected to begin by the end of 2025, depending on the court’s final approval and claim review process.
Q. Where can users check updates about the settlement?
A. Updates will be available on the official Cash App Settlement website, which will be announced after final court approval.
