Are you a current or former Cash App user? If so, you might be entitled to a significant portion of a proposed class-action settlement involving the popular online payment service. In a recent agreement earlier this year, Cash App Investing and its parent company Block Inc. consented to pay $15 million to resolve a lawsuit that alleged negligence in safeguarding user information around a series of data breaches.
Listed below are some pivotal points to consider when evaluating your eligibility for a potential settlement payout and how to navigate the claim process:
Why was Cash App targeted in the lawsuit?
Cash App and its parent company, Block, faced legal action based on their handling of security breaches and claims that they did not adequately implement protective measures to safeguard their customers’ data.
Key Incidents:
One breach involved a former employee who inappropriately accessed reports of some U.S. users without authorization in 2021. Another incident detailed the unauthorized access by external parties to Cash App accounts associated with specific phone numbers disclosed in 2023.
How to Obtain a Settlement Payment:
To be eligible for a settlement payment, you must file a claim through the official settlement administrator’s website. The deadline for submitting a claim is set for Nov. 18, with the final approval hearing scheduled for Dec. 16. Individuals impacted by unauthorized access to personal information or fraudulent withdrawals between Aug. 23, 2018, and Aug. 20 of this year are eligible to make a claim.
The Potential Monetary Compensation:
Settlement payments will depend on the extent of eligible losses and the number of claims filed. Possible claims include reimbursement of up to $2,500 in out-of-pocket losses, $25 an hour for lost time (limited to three hours), and additional relief for transaction losses.
Available Options:
Participants in the class-action lawsuit have the option to either exclude themselves from the settlement by Nov. 1 or object to the agreement by submitting a written objection to the court. Choosing to do nothing will result in no monetary compensation and potentially forfeit the opportunity to pursue further legal action.
Securing Your Data Moving Forward:
While avoiding data breaches completely can be challenging in today’s digital landscape, consumers can take preemptive measures to safeguard their information. Strategies include creating complex passwords, enabling multifactor authentication, and promptly changing passwords in response to breach notifications.
In addition to these personal precautions, government agencies like the Federal Trade Commission and credit bureaus such as Equifax, Experian, and TransUnion offer complimentary services like credit freezes and fraud alerts to combat identity theft and malicious activities.
In conclusion, awareness and vigilance can help protect your data and financial security in an increasingly digitized world. Stay informed, take proactive steps to secure your information, and exercise caution when engaging with payment apps like Cash App to safeguard your financial well-being.
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