WILMINGTON — Delaware will receive more than $314,000 under a $45 million multistate settlement with Block Inc. over allegations that the company misled Cash App users about the protections their money would receive and failed to adequately address fraud, the Delaware Department of Justice announced Friday.
State officials say marketing overstated protections
The settlement, which involved attorneys general from 46 jurisdictions, resolved claims that Block promoted Cash App in ways that suggested balances and deposits had the same safeguards as traditional banks when that was not always the case. According to the state, the company encouraged consumers — including people who are unbanked or underbanked — to use Cash App for direct deposits such as paychecks and government benefits while expanding services without matching investments in fraud prevention and customer support.
"The strong results achieved in this case are but one example of our office’s ongoing efforts to combat fraud against Delaware consumers in the face of rapidly emerging new financial technologies," Attorney General Kathy Jennings said.
What the investigation found
Delaware officials say the probe identified shortcomings including marketing that overstated the platform’s safety, insufficient investigation of unauthorized transactions and delays or failures to provide prompt refunds to victims of fraud. The state’s announcement focused on consumer protection outcomes rather than specific operational fixes required of Block.
- Total multistate settlement: $45 million
- Delaware’s share: More than $314,000
- Number of participating jurisdictions: 46 (including Delaware)
| Item | Amount / Count |
|---|---|
| Multistate settlement | $45,000,000 |
| Delaware recovery | $314,000+ |
| Participating states and jurisdictions | 46 |
Local impact and next steps for consumers
The payout to Delaware will go to the state as part of the broader settlement; the announcement did not detail individual restitution amounts or a consumer claims process specific to Delaware residents. Attorney General Jennings framed the result as part of ongoing work to protect Delawareans from fraud connected to rapidly changing financial technology.
For consumers concerned about payment apps, experts and regulators generally advise enabling strong account security, such as two-factor authentication, monitoring accounts regularly and being cautious about where direct deposits are placed. The state’s consumer protection office can be contacted for guidance on reporting suspected fraud.
This action follows a national trend of state attorneys general stepping in as digital payment platforms expand services traditionally offered by banks. The settlement highlights questions about how newer fintech services balance growth with fraud prevention and customer service commitments.
