Consumer complaint received 2024-08-21
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Block, Inc. (MT)

Dear Sir/Madam, My name is XXXX XXXX XXXX and I am writing to express my deep concern and dissatisfaction regarding CashApps recent actions. I am both disappointed and shocked by the bank 's handling of a critical situation involving a significant money transfer from my account to scammers. 
Since XX/XX/year> I have revealed that I was sophisticatedly scammed and deceived. A total amount of XXXX USD was transferred from my account utilizing CashApps services to scammers using trickery, manipulation, advanced money extraction techniques, and lies. 
The History of the Scam Events : I fell victim to an Online trading company, that misrepresented itself as a legitimate brokerage offering me to make great returns on so-called Online trading with little to no risk. I thought I was going on a legitimate investment track, and I would like to mention that their methods were illegal, manipulative, against regulation, and very questionable. 
Several individuals approached me on XXXX regarding investments in cryptocurrency. 
After conversing with one particular individual named XXXX XXXX, who had several mutual friends and a background supposedly similar to mine before entering the XXXX  space, I decided to invest. XXXX XXXX claimed to work for XXXX, and my account appeared to be listed on XXXX. 
Initially, everything seemed legitimate. Encouraged by apparent success, I was pushed to invest my own funds. It is important to mention that I made several transfers through my CashApp banking account, totaling a substantial amount of XXXX USD, with the expectation of significant returns on my investment. 
Over six months, I invested a total of {$16000.00}, with an expected withdrawal amount of {$66000.00} due about two weeks ago. 
XXXX informed me that I needed to pay {$6000.00} in taxes, which I started paying in installments. 
After paying {$5800.00}, I received an email, purportedly from XXXX, indicating that the tax amount was actually {$10000.00}. Suspecting fraud, I accused both XXXX and the email sender of being scammers and now believe I have lost everything. 
Feeling coerced and intimidated, I reluctantly proceeded with the requested transfers under the false impression that I was fulfilling legal obligations. However, as the demands for more funds persisted, and with the realization that I was being manipulated, I refused to comply any further. 
Subsequently, I discovered a company called XXXX XXXX XXXX, which claimed to have recovered my entire investment. They requested a " gas tax '' and a 10 % fee. However, after consulting with an expert from XXXX, I was advised that this company is also likely a scam. 
Regrettably, after I sent the funds to this company, I could not access the platform anymore. 
All communication was ceased, leaving me feeling betrayed and financially vulnerable. This unfortunate experience underscores the importance of vigilance and education in the digital age, especially when dealing with financial transactions and personal information online. 
Feeling increasingly suspicious about these escalating demands, I expressed my concerns and requested a withdrawal multiple times. However, instead of addressing my concerns, the company simply banned my account, leaving me unable to access my funds. My naiveness was sophisticatedly used- the Company never acted in my best interests. 
Please note that I came through unethical and sophisticated selling techniques and was pushed to invest the funds in a fake trading platform. My mental and financial well-being have been maliciously affected. The funds were transferred to a wallet being sure I was dealing with a legal entity. As I found out later, the company I dealt with appeared to be fake. 
The Scam Company Violations : I requested to file a dispute regarding the merchant and asked CashApp to assist me in recalling the funds back to my card for the following reasons : 1. The Company performed misrepresentation - pretending to be regulated ( fictitious agents names and locations ).

2. The Company prohibited my ability to withdraw my funds.

3. The Company was guaranteeing returns/yields ( unrealistic ones ).

4. The Company furnished me with bonuses- which are not allowed to be given.

5. My money was not held in a segregated account.

6. The Company did not advertise/disclose/was not transparent enough regarding the statistical data representing the percentage of total client losses at the company.

7. The Company did not mention the commission and overnight swaps.

8. The Company did not read the risk disclosure prior to my deposit ( s ). 
CashApp`s Negligence : 1 ) CashApp has not fulfilled the Complaints handling Policy and showed a lack of accuracy while handling my dispute. 
Please note that it was in XXXX, when I reached the Bank with my chargeback letter, notifying it about the fraud itself and requesting to investigate my case and recall/reverse the transactions or provide me with the reimbursement helping to mitigate the losses I have carried ( as you know, preparing and collecting documents & evidence is a time-consuming process ). These countless attempts of seeking justice, clarifying all the transactions in question, resulted in the denial of my request I doubt how attentively CashApp comes to clients` complaints/disputes if it allows itself to disregard the clients in such a sophisticated manner. 
2 ) The Bank has neglected its obligation to monitor the client`s transactions As a financial institution dealing with the Office of the Superintendent of Financial Institutions regulation, CashApp is obligated to follow XXXX  Regulations as a member of this organization. I hope the CashApp understood the risks that might occur while making transactions with such entities, as it seems to me that they neglected XXXX risk indicators ( that are recognized as the global anti-money laundering ( AML  ) and counter-terrorist financing ( CTF ) ) : The corporate structure of a trading entity appears unusually complex and illogical, such as the involvement of shell companies registered in high-risk jurisdictions. A trading entity is registered or has offices in a jurisdiction with weak AML/CFT compliance ; A trading entity, or its owners or senior managers, appear in negative news, e. g. past money laundering schemes, fraud, tax evasion, other criminal activities, or ongoing or past investigations or convictions ; A trading entitys lack of an online presence suggests business activity inconsistent with the stated line of business, e. g. the website of a trading entity contains mainly boilerplate material taken from other websites, or the website indicates a lack of knowledge regarding the particular product or industry in which the entity is trading ; A trading entity engages in complex trade deals involving numerous third-party intermediaries in incongruent lines of business. 
Therefore, I would like to inquire why CashApp transferred money to an entity, which does NOT hold any license, knowing that it could be risky. I was never informed about this fact by the Bank`s employees, which gives me reasons to consider that there is a lack of information provided from the Banks side. If the Bank provided me with this information, clearly and simply explaining all the risks, I would follow the Bank`s advice - and here I do consider we speak again about the lack of informing the clients by the professional, trained bank`s staff.

Additionally, I do suppose that CashApp has breached its Terms and Conditions as it informs its clients about warnings to prevent suspicious transactions. However, I have never received any kind of alert/warning from the bank`s side, nor was I ever told about the risks that might occureven though the transactions ( as it could be seen from my bank statements ) were international oneswhich indicates the high possibility of money laundering to take place. 
Please note that I was never even asked about the purpose of transferring the funds. Thus, I do consider that the Bank failed to conduct ( enhanced ) customer due diligence and monitoring of transactions. I would like to emphasize that I have not received any notifications/emails/calls from the Bank`s employees. I informed the bank about the fraud I had fallen victim to ; therefore, I have certain questions about how CashApp was ensuring the security of my transactions. 
The only thing I received was instructions on how to protect myself in the future, which is bigger ; however, in my perception, it has nothing to do with the security of clients` funds. I do believe that none of the financial institutions would ever transfer money to any terroristic organization ( or any person affiliated with it ) even if those transactions would be validated by the bank. 
Recall reason descriptions : The following are the reasons for the allegations against the companies : 1 ) Goods or Services Were Either Not as Described or Defective : Please pay attention to the fact that the companies misrepresented their services and offers and appeared to be scams. The only things I received from the Company were fake promises and lies. 
2 ) Questionable Merchant Activity : You have to know that the merchant engages in deceptive practices, such as misleading advertising and false promises, leading to disputes regarding the legitimacy of the transactions. The merchant has to be checked if it operates in an industry known for a high incidence of fraud or chargebacks, or if it has a history of complaints or negative reviews related to their business practices.The Company failed to fulfill its obligations simply by stealing my funds. 
3 ) Suspected Fraudulent Activity : Upon further investigation and due diligence, I have reason to believe that the recipient entity may be engaged in fraudulent activities. This suspicion is based on discrepancies in communication, irregularities in transaction procedures, and concerns raised by other affected parties. 
XXXX ) XXXX and XXXX XXXX : The recipient entity 's activities XXXX have potential legal and regulatory implications, including, but not limited to, violations of anti-money laundering ( AML ) and counter-terrorism financing ( CTF ) laws. By recalling the transfer, we aim to mitigate any associated risks and ensure compliance with relevant laws and regulations. 
XXXX ) XXXX XXXX of Transactions : As the global financial regulations state, the account holder did not authorize or participate in a transaction conducted in a XXXX Not XXXX environment. Alternatively, a fraudulent transaction was completed in a XXXX Not XXXX environment using an account number for which no valid card was issued or is outstanding, and no authorization was obtained. The companies operate like they are unregulated, siphoning money away from unsuspecting victims using trickery, false promises, and bullying to what looks like an affiliate with scammers. 
Desired Outcome : I request the Consumer Financial Protection Bureau to address my dispute and resolve this matter immediately and urgently. 
I demand CashApp reimburse me for the amount of XXXX USD, as I have fully been released of liability. I consider CashApp as the responsible party for losing my funds in case it complies with AML/CTF prescriptions . 
I request CashApp maintain a high quality of customer care and service and act to improve the support chat and team as well as deal with the relevant individuals who did not perform their jobs appropriately. 
Im requesting the Consumer Financial Protection Bureau to assist me because CashApp is not willing to resolve my complaint. 
Please find all the attached letters sent to/received from CashApp, along with the supporting documents and correspondence. 
Thank you for your assistance in advance. 
Respectfully, XXXX XXXX