Consumer complaint received 2024-12-07 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: CA

Complaint narrative:
Dear CFPB, I am writing to report a fraudulent scam involving an individual impersonating a representative from XXXX XXXX XXXX XXXX. Below are the details of the incident, the vulnerabilities I observed in XXXX XXXX and Cash Apps systems, and the efforts I made to resolve this matter with both companies. 

Incident Details : In early XXXX, I received a phone call from someone claiming to be from XXXX XXXX XXXX XXXX. They informed me of suspicious transactions from Florida on my checking account and asked me to confirm my location. They also referenced my account balance, leading me to believe they had access to my sensitive banking information. 

The caller claimed my debit card was compromised and would be frozen but provided a temporary replacement debit card number. They instructed me to transfer {$1000.00} from my account to my Cash App and then to this new debit card to avoid disruption to my finances and pay my bills. Unfortunately, after completing the transfer, I realized I had been defrauded when the scammers hung up. 

Vulnerabilities Identified : XXXX XXXX XXXX XXXX XXXX XXXX : The scammers knowledge of my account balance and transaction history indicates a potential breach or successful phishing scheme targeting XXXX XXXX customers. 
The caller convincingly posed as a XXXX XXXX representative, highlighting flaws in the verification process for customer interactions. 
Cash Apps Lack of Safeguards : The transfer of funds through Cash App to fraudulent recipients underscores a lack of robust security mechanisms to flag suspicious activity. 
Once the transfer was completed, I found limited options for recourse or recovery of the funds, leaving victims without adequate protection. 
Efforts Made to Resolve the Issue : Following the incident, I promptly filed an investigation with both XXXX XXXX XXXX XXXX and Cash App. 

XXXX XXXX XXXX XXXX XXXX : XXXX XXXX informed me they have XXXX liability for actions taken by account holders, even in cases of social engineering scams. They disregarded the fraudulent context and did not acknowledge the role of potential vulnerabilities in their systems. 
Cash App Response : I filed a report with Cash App seeking assistance in recovering the transferred funds. However, the platforms limited options for investigating fraud left me without resolution or recourse. 
Request for Investigation and Support : This fraudulent activity has caused financial and emotional hardship, and I am concerned about the systemic vulnerabilities in both XXXX XXXX and Cash App that facilitated this scam. I respectfully request the FTC investigate these issues and take steps to ensure these companies improve their security measures and customer protections. 

Additionally, I would appreciate any guidance on recovering my lost funds and protecting myself from similar scams in the future. 

Thank you for your attention to this matter. I am available to provide further details or documentation as needed. 

Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation