The Consumer Financial Protection Bureau ordered Block, which operates Cash App, to refund customers $75 million to $120 million and pay a $55 million fine to the bureau’s victims’ relief fund.
The CFPB said in a press release that it had determined that Block had weak security protocols for Cash App that put users at risk.
“Cash App created the conditions for fraud to proliferate on its popular payment platform,” CFPB Director Rohit Chopra said in the release. “When things went wrong, Cash App flouted its responsibilities and even burdened local banks with problems that the company caused.”
Block also agreed to fix its customer service issues and investigate disputes. Among other things, Block will set up 24-hour, live-person customer service, “fully investigate unauthorized transactions and to provide timely refunds, where appropriate,” the bureau said.
The announcement comes a day after Block agreed to pay an $80 million fine to settle claims by 48 state regulators that it violated Bank Secrecy Act and anti-money laundering laws.