Consumer complaint received 2025-11-06 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Block, Inc.
State: WV

Complaint narrative:
I am writing to file a formal complaint against Cash App, operated by Block , Inc., for failing to properly investigate and resolve unauthorized electronic fund transfers from my account in violation of the Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq., and its implementing Regulation E, 12 C.F.R. Part 1005. Specifically, Cash App has wrongfully denied my claim for a {$1000.00} unauthorized transaction, closed my account without due process, and ignored my verified identity status, resulting in financial harm and ongoing distress. I request that the CFPB investigate this matter, compel Cash App to refund the full disputed amount plus any applicable fees or interest, and require them to reopen my account or provide equivalent relief. Account and Incident OverviewI am a XXXX resident and Cash App user with the account associated with the the email : XXXX ( XXXX XXXXXXXX ). 
My identity was fully verified with Cash App prior to the incident, as evidenced by attached documentatiion. On or around XX/XX/XXXX, my Cash App account was fraudulently accessed by unauthorized XXXX  parties, leading to multiple attempted and successful transactions through XXXX XXXX. I promptly reported the fraud to Cash App upon discovery and cooperated fully with their investigation. Of the XXXX unauthorized transactions identified : XXXX were resolved in my favor and refunded. XXXX XXXX  {$10.00} refunded on XX/XX/XXXX, XXXX XXXX {$100.00} temporary credit issued XX/XX/XXXX, XXXX XXXX {$400.00} temporary credit issed XX/XX/XXXX. 
The largest transaction for {$1000.00} to recipient XXXX XXXX was denied on XX/XX/XXXX despite clear evidence it was unauthorized. Stated reason for denial was identity verification was not completed therefore closing my account as the final outcome. As shown in the attached evevidence my identity was marked as verified in my account. 
Under EFTA 1693f and Regulation E 1005.11, Cash App was required to investigate the claim within XXXX business days ( with provisional credit ) and complete the investigation within XXXX  days, providing a written explanation for any denial. They failed to do so adequately, instead relying on automated flags and contradictory communications that violated these protections. Timeline of Key Events and XXXX XXXX, XXXX XXXX XXXX : Fraudulent access occurs, including multiple failed attempts and the {$1000.00} successful transfer. I monitored my account closely and reported all suspicious activity immediately. 
Post-Fraud Reporting : I filed disputes for all unauthorized transactions. Cash App refunded XXXX but flagged the {$1000.00} claim as " potentially fraudulent '' without providing specific evidence or allowing a meaningful response. 
XX/XX/XXXX ( XXXX XXXX  XXXX ) : I received XXXX simultaneous emails from Cash App Support ( Attachments C and D ) : Email XXXX : Paused the dispute pending identity verification by XX/XX/XXXX, citing " account history, transactions, prior disputes, and interactions '' as indicating fraud. This ignored my existing verified status. 
Email XXXX : Immediately closed my account and denied the {$1000.00} claim, stating failure to verify identity and possible Terms of Service violations, with no further details provided. These contradictory notices prevented any opportunity to comply or appeal effectively at the time. 
Ongoing Communications : Despite multiple follow-ups, Cash App provided no substantive documentation supporting their denial, as required by Regulation E 1005.11 ( c ). They also failed to issue provisional credit during the investigation. 
XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX issued a final denial email ( Attachment E ), despite my identity verification. I filed an appeal as instructed in the email ( Attachment F : Appeal Submission Confirmation ), but have received no response to date. 
These actions not only breached EFTA/Reg E requirements for timely, fair investigations but also appear to reflect systemic issues witXXXX XXXX XXXX XXXX XXXXXXXX detection and dispute processes, as highlighted in recent CFPB enforcement actions against Block , Inc . ( e.g., the XX/XX/XXXX {$170.00} XXXX order for inadequate scam and fraud safeguards ). My liability for unauthorized transfers should be limited to {$0.00} under XXXX XXXX ( a ), as I reported the fraud promptly ( within XXXX business days ). XXXX and XXXX XXXX ordeal has caused significant financial loss ( {$1000.00} unreimbursed ), XXXX  XXXX, and inconvenience, including lost access to my remaining balance, stocks, and XXXX holdings. I have been unable to use alternative services fully due to the unresolved nature of this claim. I respectfully request that the CFPB : Compel Cash App to immediately refund the full {$1000.00} disputed amount, plus any overdraft fees, interest ( at the federal rate under 28 U.S.C. 1961 ), and reimbursement for time spent resolving this ( e.g., XXXX hours at XXXX XXXXXXXX minimum ). 
Require Cash App to provide a detailed written explanation of their denial, including all supporting documents, and reopen my account with restored access to remaining funds/assets. 
Investigate XXXX XXXX XXXX  broader practices for EFTA/Reg E compliance, particularly regarding automated denials and contradictory communications.. 
I have attached all relevant documentation : Attachment A : Verified Identity Screenshot Attachment B : Disputed Transaction Screenshot Attachment C : XX/XX/XXXX Email XXXX  XXXX ( Verification Pause ) Attachment D XXXX XXXX XXXX XXXXXX/XX/XXXX Email XXXX  XXXX ( Account Closure and Denial ) Attachment XXXX : XX/XX/XXXX Final Denial Email Attachment F : Appeal Submission Confirmation

Company response to consumer: Closed with explanation