Consumer complaint received 2025-07-09 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Block, Inc.
State: IL

Complaint narrative:
On XX/XX/2025, I was the victim of a scam involving someone impersonating a XXXX XXXX  representative. I was contacted by phone and told there was suspicious activity on my account and that I needed to verify my identity by sending a transaction through Cash App. I followed the instructions and sent {$1400.00} to the user XXXX XXXX at XXXX XXXX XXXXXXXX, believing I was working with legitimate XXXX  fraud protection. I was in the middle of an airport commute and was not aware XXXX XXXX was the name of the recipient until after the fact. 

Just minutes later, while the transaction was still showing as PENDING for both cash app and XXXXXXXX XXXX, I realized I had been scammed and immediately began taking action. I called XXXXXXXX XXXX  at XXXX XXXX XXXX XXXX and again at XXXXXXXX XXXX, and I contacted Cash App Support to report the fraud. I also immediately filed a formal dispute through Cash App, explaining that I had been fraudulently induced to send the payment and that this constitutes an unauthorized electronic fund transfer under Regulation E ( 12 CFR 1005.6 ). Although frazzled and a bit distraught in that moment, I actually felt a sense of calm after taking these steps because the way I was processing it is that with the transaction still pending on both ends there shouldnt be a problem stopping this transaction. I have never sent an amount anywhere close to that over cash app and if I were to, I would expect some sort of second form of authorization whether its a phone call from the security department or an additional way to ensure that its me sending that money in an authorized manner. 

Cash App later denied my dispute. When I requested documentation of their investigation, they provided a one-page summary showing the transaction took placesomething I never disputed. No investigation notes, communication logs, or verification steps were shared. They simply closed the case with no further action.

Additionally, there are two highly concerning issues suggesting security failures and possible insider access : 1. The scammer requested exactly {$1400.00}, which happened to be my entire account balance. If they had requested more, the transaction wouldve failed. This raises concerns about unauthorized access or data leakage, as the scammer seemed to know my available balance. 
XXXX. My XXXX account regularly flags smaller, legitimate transactions ( such as flights or hotels ), even when I have ample funds. Yet this {$1400.00} Cash App withdrawala highly unusual transactionwas not flagged or delayed for verification. That represents a significant failure of fraud detection systems.

Since the day of the incident, I have made more than a dozen calls to both XXXX and Cash App, starting within XXXX minutes of the fraud and continuing over the course of nearly a month. Despite repeated contact, I have received no written explanation of why my claim was denied under Regulation Eand not even a verbal one, despite specifically requesting one multiple times. This lack of transparency and refusal to engage meaningfully is unacceptable and deeply concerning. What has been additionally frustrating, is for each of those dozen or more phone calls, I have to start from square one. There is never any former documentation communicated on either part from XXXX or Cash app the new person I speak to each time doesnt seem to know anything about my case or the details of how that money was lost. So each phone call begins at square one where Im repeating the same information explaining the same story and next thing you know were 10 to 15 minutes in and Im finally starting from a point that I shouldve been able to start from about to being on the phone call. I have spent hours fighting and digging to get that money back that drained my account. I would hope any human being would fight like I am if they lost everything that they had worked for. 

Cash Apps failure to investigate this dispute properly, and their denial based solely on the existence of a transaction, violates the spirit and letter of Regulation E. Im requesting CFPB review and intervention to ensure appropriate resolution and accountability.

Company response to consumer: Closed with explanation