North Carolina Attorney General Jeff Jackson announced a multistate settlement with Block, Inc., the parent company of Cash App, that could provide up to $165 million in consumer relief and payments to states over allegations the company failed to adequately protect users from fraud.

Under the agreement, Block will complete a previously announced distribution of between $75 million and $120 million to eligible consumers nationwide and pay an additional $45 million to participating states. North Carolina will receive nearly $1 million.

Jackson alleged that Block misrepresented Cash App as a secure way to manage money while failing to implement safeguards that could have prevented fraud and providing inadequate customer support when users needed help.

According to the settlement, the company’s account sign-up process required minimal identity verification, making it easier for scammers to create fraudulent accounts. For several years, Cash App also lacked a customer service phone number, leading many users to unknowingly call fake support lines operated by scammers who then gained access to victims’ accounts.

The attorney general also alleged that Cash App’s “Cash App Fridays” social media promotion encouraged users to publicly share their $cashtag, creating opportunities for scammers to impersonate the company and steal account information. In addition, some legitimate customers whose accounts were frozen for suspected fraud reportedly waited weeks to regain access to their money.

As part of the settlement, Block must maintain improved customer support, including live assistance available around the clock and phone support with human representatives for at least 13.5 hours each day. The company must also stop making misleading claims about Cash App’s security, end marketing practices that increase fraud risks, educate customers about common scams, investigate fraud complaints, and reimburse users for unauthorized transactions when required by law.

Block did not admit wrongdoing as part of the settlement. The agreement is intended to strengthen consumer protections while providing compensation to affected users nationwide.