News Summary

The Consumer Financial Protection Bureau (CFPB) has fined Block, the creator of Cash App and parent company of Square, up to $175 million for inadequate fraud controls on its payment platform. The fine includes $120 million for refunds and other redress to consumers, along with a $55 million penalty. The CFPB criticized Block for misleading terms of service and poor investigative practices, which led to unresolved fraudulent transactions. Additionally, Block’s customer service was found to be inadequate, with complaints about delayed and confusing responses. The CFPB has ordered Block to establish a 24/7 customer support line. Block has agreed to comply with the order while disputing the CFPB’s claims. This action is part of the CFPB’s broader effort to regulate digital payment platforms, which has faced opposition from industry groups like NetChoice and TechNet.