The bloc reached a $45 million settlement with 46 states over its Cash App fraud investigation

Block has agreed to pay $45 million to settle claims from 46 US states alleging that its peer-to-peer payments app, Cash App, failed to adequately protect users from fraud.

State prosecutors said they found that Block misled users by falsely advertising that Cash App offered bank-like protections, including advanced fraud detection. Block denied any wrongdoing.

According to the states, Cash App allowed users to create accounts without a Social Security number or date of birth, and did not place limits on the number of accounts a person could open, making it easier for scammers to exploit the platform. The states also alleged that because Cash App did not provide an official customer support phone number, many users whose accounts were closed turned to fake customer service numbers operated by scammers.

Many Americans rely on fintech apps as banking services, which has led to increased oversight. The Block settlement represents the latest chapter in regulators’ scrutiny of Cash App’s business practices. This follows an earlier action by the Consumer Financial Protection Bureau, which similarly accused Block of failing to investigate fraud claims or provide adequate customer service, resulting in $175 million in fines and other restitution to consumers.

Under the new settlement, Block will improve Cash App’s fraud prevention and customer service measures, including by providing live customer support to users of the mobile payment platform.

Reuters was the first to report news of the settlement. Block did not immediately respond to TechCrunch’s request for comment.