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CFPB fines Block up to $175m over Cash App's lax fraud controls

The Consumer Financial Protection Bureau is fining Block $175 million for how it handled fraud on Cash App.

"While we strongly disagree with the CFPB’s mischaracterizations," the company shared on its blog, "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 Consumer Financial Protection Bureau has taken an increasingly aggressive approach towards regulating payment apps and digital wallets in the last year of the Biden Administration. NetChoice, a trade association for online companies, and TechNet, "a bipartisan network of technology CEOs," are both suing the CFPB over its efforts to clean up digital payments, with familiar claims of government overreach and that the CFPB failed to explain the risks it was addressing when it decided to regulate payment apps in the first place.

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