Introduction
Nowadays, data breaches have become an unfortunate reality. Popular financial platforms like Cash App aren’t immune to these security threats, leaving users concerned about their sensitive information. If you’re wondering about Cash App data breach compensation, you’re not alone. This article will break down the complexities of cash app data breaches, potential compensation, and the steps you can take after a cash app data breach.
Overview of Cash App Data Breaches
Cash App, a popular mobile payment platform under Block Inc. (formerly Square, Inc.), has experienced major data security issues.
In December 2021, a significant data breach at Cash App resulted from a former employee downloading reports containing sensitive customer information, impacting approximately 8.2 million users. This breach exposed full names and brokerage account numbers, and for some, portfolio values and trading activity for a single day. Furthermore, in 2023, accounts were accessed through recycled phone numbers, further revealing security vulnerabilities within the platform. It’s crucial to note, however, that the compromised data did not include highly sensitive information such as passwords, Social Security numbers, card details, or banking information.
The Impact on Users
- Data breaches can lead to various risks, including identity theft, financial fraud, and unauthorized access to accounts.
- The anxiety and stress associated with potential data compromise can also take a significant emotional toll.
Understanding Cash App Data Breach Compensation
Cash App agreed to pay $15 million in a settlement related to the 2021 data breach. However, the key points are:
Legal Considerations
- This settlement is the result of a class-action lawsuit alleging that Cash App failed to implement adequate security measures.
- While Cash App has agreed to the settlement and enhanced security measures, they deny any liability or wrongdoing.
Cash App’s Policies
- Block Inc. has stated that they have taken steps to strengthen technical and administrative safeguards.
- Block inc. Reiterated its commitment to user data security in its public disclosures.
Claiming Compensation
- Settlement Portal:
- Eligible users can file a claim through the dedicated settlement portal at cashappsecuritysettlement.com.
- If you got a notification with a Notice ID and confirmation code, keep them ready when filing your claim.
- Claim Categories:
- Compensation may cover out-of-pocket expenses (credit monitoring, etc.), lost time (up to $25 per hour, maximum 3 hours), and transaction losses (up to $2,500).
- Gather relevant documentation: bank statements, correspondence with Cash App, and police reports.
Deadline
- The deadline to submit claims is November 18, 2024.
- The affected users in the cash app data breach can also contact the Settlement Administrator via phone at 1-866-615-9740.
Note: For further information, visit cashappsecuritysettlement.com.
Eligibility for Compensation
- Eligibility extends to current and former Cash App and Cash App Investing users who used the services between August 23, 2018, and August 20, 2024.
- Compensation is available for those who experienced unauthorized access, fraudulent transactions, or whose personal data was exposed.
- Users in Delaware who experienced unauthorized access to their accounts are also eligible.
Steps to Take After Cash App Data Breach
- Monitoring Accounts: Regularly check your Cash App transaction history and bank statements for any unauthorized activity. Enable alerts to stay informed about suspicious transactions.
- Reporting Fraud: If you suspect fraud, report it to Cash App’s customer support immediately. However, If you believe you’re a victim of identity theft, file a report with the FTC and local law enforcement.
- Protecting Personal Information: To protect your Cash App account and other online services, use strong, unique passwords and enable two-factor authentication (2FA). Stay vigilant against phishing emails or phishing messages asking for personal information.
Source: WBRC 6 News
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