Oklahoma Attorney General Gentner Drummond filed a lawsuit this week against Block Inc., the parent company of the popular Cash App, accusing the company of a pattern of unfair and deceptive practices that left some users exposed to fraud.
Allegations and legal step
The civil action, brought under the Oklahoma Consumer Protection Act, claims Block misrepresented the safety and protections tied to Cash App accounts, including statements about Federal Deposit Insurance Corp. (FDIC) coverage. The lawsuit argues that Block suggested users’ balances were insured through partner banks in ways that did not accurately reflect how FDIC pass-through insurance operates.
According to the court filing, FDIC pass-through insurance applies in the event a partner bank fails, not when an account holder experiences fraud or when the application itself has problems. The suit also alleges that Block failed to provide adequate telephone-based customer service when users sought help after fraud and account takeovers.
“The Office of the Oklahoma Attorney General and counsel for Block/Cash App have signed a consent judgment, which is currently pending the Court’s approval. We will have more to share once the judgment is signed.”
Fraud concerns tied to promotions and support gaps
Prosecutors say the company continued aggressive promotions — including a marketing push that encouraged users to post usernames — despite knowing fraudsters were exploiting that activity to target and take over accounts. The filing states scammers impersonated company employees to trick users into surrendering login credentials, and that false customer-service pages and phony toll-free numbers further harmed victims.
The AG’s office described the filing as a friendly suit, meaning both parties have agreed to the terms in a consent judgment and are asking a judge to approve the settlement. The statement from Drummond’s office indicates more details will be provided after the court signs the judgment.
What the lawsuit says happened
- Block allegedly misrepresented FDIC-related protections for Cash App account balances.
- Cash App promotions are said to have increased account takeover attempts.
- Customers reportedly could not reach adequate telephone support when fraud occurred, exacerbating losses.
The complaint focuses on how those alleged practices affected consumer confidence and safety when using a widely adopted mobile payment platform. As digital wallets become more common across Oklahoma, the outcome of this case could have implications for how companies disclose protections and provide customer support.
| Allegation | Summary |
|---|---|
| FDIC claims | Company described account coverage in ways the AG says were misleading |
| Promotions | Marketing that prompted username-sharing allegedly led to increased fraud |
| Customer support | Insufficient telephone help during fraud incidents, per the filing |
The AG’s office and Block have reached a consent judgment that the court must approve before it takes effect. The filing does not detail monetary penalties or specific relief in the public summary released so far. Officials said they will release additional information after the judge signs the judgment.
As the case proceeds, Oklahomans who use Cash App should be mindful of safe account practices: avoid sharing log-in information, be skeptical of unsolicited contacts claiming to be company representatives, and report suspicious pages or phone numbers. Consumers seeking help with fraud can also contact the Attorney General’s consumer protection division for guidance.
This story will be updated as court records and official statements become available.
