12:15 PM EST, 01/16/2025 (MT Newswires) -- Block (SQ) has been ordered to refund up to $120 million to certain customers and pay a $55 million fine for its allegedly inadequate security measures against fraud, the Consumer Financial Protection Bureau (CFPB) said Thursday.

The company was also ordered to investigate unauthorized Cash App transactions and establish a 24-hour, live-person customer service, CFPB said.

Those entitled to refunds and other redress are the consumers whose unauthorized transactions were not investigated, who did not receive the refunds due them, and whose accounts were locked for an extended period or were not given provisional credits during investigation, the agency added.

"While Block is required by law to investigate and resolve disputes about unauthorized transactions, the company's investigations were woefully incomplete," the CFPB said in a statement. "Block directed users - who had suffered financial losses as a result of fraud - to ask their bank to attempt to reverse transactions, which Block would subsequently deny."

Block confirmed in a blog post Thursday that it reached an agreement with CFPB.

"While we strongly disagree with the CFPB's mischaracterizations, we made the decision to settle this matter in the interest of putting it behind us and focusing on what's best for our customers and our business," the company said.

Shares of Block were up more than 2% in recent trading.

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