Recover funds from unauthorized transactions, account freezes, and P2P payment scams. California law and federal EFTA protections apply to both platforms.
Venmo (PayPal)Cash App (Block/Square)
60 Days
EFTA Reporting Window
$50 Max
Liability (2-Day Report)
10 Days
Investigation Deadline
Venmo & Cash App Fraud in California
Venmo (owned by PayPal) and Cash App (owned by Block, formerly Square) are the two dominant peer-to-peer payment apps in California. Both platforms face increasing fraud problems, and California consumers have strong legal protections when these companies fail to protect accounts or properly investigate disputes.
Critical Distinction: Both apps distinguish between "payments" (person-to-person transfers with no protection) and "purchases" (goods/services with limited protection). Most fraud victims sent "payments" which have no buyer protection under the apps' terms - but EFTA protections for unauthorized transactions still apply regardless.
Platform Comparison
Feature
Venmo
Cash App
Parent Company
PayPal Holdings, Inc.
Block, Inc. (formerly Square)
Bank Partner
Synchrony Bank (debit card) / PayPal
Sutton Bank / Lincoln Savings Bank
Purchase Protection
Yes - "Goods & Services" payments only
Limited - only eligible business purchases
P2P Payment Protection
None - "Friends & Family" has no protection
None - personal payments have no protection
Dispute Resolution
PayPal Resolution Center
In-app support / Cash App support
Arbitration Required
Yes (PayPal User Agreement)
Yes (Cash App Terms of Service)
California Regulator
DFPI (Money Transmission License)
DFPI (Money Transmission License)
Common Fraud Scenarios
Venmo Fraud Types
Account takeover: Hacker gains access, drains balance and linked bank
Fake payment scams: Screenshot of "payment" that was never sent
Marketplace fraud: Payment for goods never delivered
Refund scams: Overpayment with request to return difference
Social engineering: Impersonating friends requesting emergency funds
Account freeze: Venmo freezes account with balance held
Account deactivation: Funds trapped in closed account
Unauthorized vs. Authorized: The Key Legal Distinction
Unauthorized Transactions (Strong Protection)
Someone accessed your account without permission
Account takeover via hacked email/phone
SIM swap attack enabling unauthorized access
Transactions you did not initiate or approve
Stolen device used to send payments
EFTA Result: Full reimbursement required if reported within 60 days
Authorized-But-Scammed (Limited Protection)
You initiated the payment yourself
Scammer tricked you into sending money
Marketplace purchase never delivered
Romance or investment scam payments
Paid wrong person by mistake
EFTA Result: No automatic protection, but California law and platform policies may still apply
California Advantage: Even when EFTA does not apply, California's Unfair Competition Law (B&P Code 17200) and Consumer Legal Remedies Act allow claims against platforms that fail to properly investigate fraud, misrepresent their protections, or engage in unfair practices that harm consumers.
California Legal Framework
California provides robust consumer protection laws that supplement federal EFTA protections. When Venmo or Cash App fails to protect your account or denies a valid fraud claim, multiple legal theories may apply.
Electronic Fund Transfer Act (EFTA) / Regulation E
15 U.S.C. 1693 / 12 C.F.R. Part 1005
Federal law requiring financial institutions to reimburse unauthorized electronic transfers. Both Venmo and Cash App are subject to EFTA as they provide electronic fund transfer services. Consumers must report unauthorized transfers within 60 days to preserve full protection.
California Unfair Competition Law (UCL)
Business & Professions Code 17200
Prohibits any unlawful, unfair, or fraudulent business practice. Platforms that systematically deny valid fraud claims, fail to properly investigate disputes, or mislead consumers about protections may face UCL liability. Provides restitution and injunctive relief with 4-year statute of limitations.
California Consumer Legal Remedies Act (CLRA)
Civil Code 1750-1784
Prohibits unfair and deceptive practices in consumer transactions. Platforms misrepresenting fraud protection, failing to honor stated policies, or engaging in deceptive practices violate CLRA. Provides actual damages, punitive damages, and attorney fees with 3-year statute of limitations.
California Financial Code - Money Transmission
Financial Code 2000-2175
Both Venmo and Cash App operate under California money transmission licenses issued by DFPI. The DFPI has authority to investigate consumer complaints and take enforcement action against licensed money transmitters that violate consumer protection requirements.
Statutes of Limitations
Claim Type
Deadline
Citation
EFTA Unauthorized Transfer
1 year from violation
15 U.S.C. 1693m
California CLRA
3 years
Civil Code 1783
California UCL
4 years
B&P Code 17208
Breach of Contract
4 years (written)
CCP 337
Fraud
3 years from discovery
CCP 338(d)
Conversion
3 years
CCP 338(c)
EFTA Reporting Deadlines: While you have 1 year to sue, report unauthorized transfers immediately. Report within 2 business days for maximum $50 liability. Report within 60 days of statement for full protection. After 60 days, you may be liable for all losses occurring after the 60-day period.
California DFPI Complaints
The California Department of Financial Protection and Innovation (DFPI) licenses and regulates both Venmo and Cash App. Filing a DFPI complaint:
Creates an official regulatory record
May trigger platform response and account review
Supports enforcement patterns the DFPI tracks
Can be referenced in your demand letter
File online at dfpi.ca.gov/file-a-complaint
Arbitration Considerations: Both platforms require arbitration for most disputes. California law (CCP 1281.97-1281.99) requires companies to pay arbitration fees promptly or waive arbitration rights. If Venmo or Cash App fails to pay AAA or JAMS fees on time, you may be able to proceed in California state court instead.
Platform Policies & Protections
Understanding the specific terms of service for each platform is critical. Both Venmo and Cash App limit protection for peer-to-peer payments while offering some coverage for goods and services transactions.
Venmo User Agreement
Venmo Protection Coverage
Purchase Protection: Covers eligible purchases using "Goods & Services" payment type - items not received or significantly not as described
No P2P Protection: Payments to "Friends & Family" have zero buyer protection - explicitly designed for trusted contacts only
Seller Protection: Available for eligible business transactions against unauthorized claims
Unauthorized Transaction Protection: Venmo must investigate and reimburse truly unauthorized access per EFTA
Key Limitation: Venmo's User Agreement states P2P payments are only for people you "know and trust" and are not refundable or reversible through Venmo.
Cash App Terms of Service
Cash App Protection Coverage
Cash App Pay Protection: Limited protection when paying eligible businesses through Cash App Pay
No P2P Protection: Person-to-person payments are instant, irreversible, and have no buyer protection
Bitcoin Transactions: Cryptocurrency purchases and transfers are final and cannot be reversed
Unauthorized Transaction Protection: Must investigate and reimburse unauthorized access under EFTA
Key Limitation: Cash App explicitly states it is not a bank and that payments are instantaneous and usually cannot be canceled.
Payment vs. Purchase: Critical Distinction
Transaction Type
Venmo
Cash App
Protection Level
P2P Payment (personal)
Friends & Family
Standard Send
None
Business Payment
Goods & Services
Cash App Pay
Limited Protection
Unauthorized Access
Any transaction type
Any transaction type
EFTA Protection
Crypto Transactions
Venmo Crypto (if applicable)
Bitcoin Buy/Send
None (final)
Scammer Tactics: Scammers often instruct victims to send as "Friends & Family" (Venmo) or claim payment type does not matter (Cash App) specifically because these transfers have no buyer protection. If a stranger asks you to use P2P payment, it is almost certainly a scam.
Account Freezes & Holds
Venmo Account Freezes
Can freeze accounts for suspected fraud or TOS violations
May hold funds for up to 180 days during investigation
Often provides limited explanation for freezes
Appeal process through PayPal Resolution Center
California law requires reasonable investigation and communication
Cash App Account Closures
Can close accounts "at any time, for any reason"
Funds may be held pending investigation
Limited appeal options through support
Often closes accounts without detailed explanation
DFPI complaint may prompt faster resolution
Breach of Contract Claims: When Venmo or Cash App fails to follow their own stated policies, fails to properly investigate disputes, or wrongfully freezes accounts without basis, you may have breach of contract claims in addition to statutory consumer protection claims.
Evidence & Documentation Checklist
Comprehensive documentation is essential for recovering funds from Venmo or Cash App fraud. Gather evidence immediately - do not wait for the platform's investigation results.
Transaction Records
Screenshots of disputed transaction(s) in app
Transaction confirmation emails
Bank/card statements showing linked transfers
Recipient username, phone, or email
Date, time, amount, and payment note for each transaction
Payment type (P2P vs. Goods & Services)
Scam Communications
Text/SMS messages from scammer
Email correspondence with headers
Social media messages (full screenshots)
Marketplace listings (Facebook, Craigslist, etc.)
Phone call logs and voicemails
Any websites or links scammer provided
Platform Dispute Records
Date/time you first reported to platform
Support chat transcripts (screenshot entire conversation)
Dispute case/reference number
Written denial or resolution from platform
Any follow-up communications
Account status (frozen, limited, closed)
Official Reports
Police report with case number
FTC complaint (ReportFraud.ftc.gov)
California DFPI complaint
CFPB complaint (if applicable)
FBI IC3 complaint (if over $1,000)
State Attorney General complaint
Account Takeover Documentation
If your account was accessed without authorization, also gather:
Login history showing unfamiliar devices/locations (request from platform)
Password reset emails you did not request
Evidence of 2FA being disabled or bypassed
Carrier records if SIM swap suspected
Email account breach notifications
Timeline of when you last legitimately accessed the account
Account Freeze Documentation
If your funds are frozen or account is limited:
Screenshot of account status and balance
All communications from platform about the freeze
Documentation showing legitimate source of funds
Business records if using for business purposes
Identity verification documents you submitted
Timeline of freeze and all contact attempts
Preservation Notice: Send a written demand to both the platform and any linked bank to preserve all records related to your account, disputed transactions, and their investigation. Under California law, destruction of relevant evidence can result in adverse inference.
Request Your Data: Both Venmo and Cash App must provide account data under California Consumer Privacy Act (CCPA). Submit a data access request to obtain transaction logs, login history, and support communications that may support your claim.
Sample Demand Letter
This template can be adapted for either Venmo or Cash App fraud claims. Customize based on your specific facts - unauthorized access versus authorized-but-scammed scenarios require different legal arguments.
[Your Name]
[Your Address]
[City, CA ZIP]
[Your Email]
[Date]
[PLATFORM LEGAL DEPARTMENT]
For Venmo:
PayPal, Inc. - Venmo Legal
2211 North First Street
San Jose, CA 95131
Legal Department: venmo-legal@paypal.com
For Cash App:
Block, Inc. - Cash App Legal
1955 Broadway, Suite 600
Oakland, CA 94612
Legal Department: legal@squareup.com
Via Email and Certified Mail, Return Receipt Requested
Re: Demand for Reimbursement - Unauthorized/Fraudulent Transactions
Account: [Your Username/Email]
Transaction Date(s): [Date(s)]
Amount: $[Total Amount]
Dispute Reference: [Case Number if assigned]
Dear Legal Department:
I am a California resident writing to demand immediate reimbursement of $[Amount] in [unauthorized transactions/fraud losses] from my [Venmo/Cash App] account. Despite proper reporting and documentation, your platform has [denied my claim/failed to respond/failed to properly investigate]. This violates the Electronic Fund Transfer Act, California consumer protection law, and your own stated policies.
ACCOUNT BACKGROUND
I have maintained a [Venmo/Cash App] account since [Year]. I use the platform for [legitimate P2P payments/small business transactions/etc.]. My account was in good standing with no prior disputes.
FRAUD DESCRIPTION
[OPTION A - UNAUTHORIZED ACCESS:]
On or about [Date], my [Venmo/Cash App] account was accessed without my authorization. I did not share my login credentials, did not lose my device, and did not authorize any person to access my account. The following unauthorized transactions occurred:
- [Date]: $[Amount] to [Recipient username/identifier]
- [Date]: $[Amount] to [Recipient username/identifier]
I discovered the unauthorized access on [Date] when [describe how - notification, checked app, bank alert, etc.]. I immediately [changed password/contacted support/froze account] and reported the fraud to your platform on [Date].
[OPTION B - IMPERSONATION/SCAM:]
On [Date], I was contacted by an individual who [describe the scam - impersonated support, claimed to be seller, romance scam, etc.]. Based on these misrepresentations, I sent payment(s) totaling $[Amount] to [username/identifier].
I reported this fraud to your platform on [Date]. The scammer impersonated [describe - your company's support, a legitimate business, etc.], which undermines the voluntary nature of my authorization. Under evolving CFPB guidance and California law, such fraud-induced transfers warrant investigation and potential reimbursement.
[OPTION C - ACCOUNT FREEZE:]
On [Date], [Venmo/Cash App] [froze/limited/closed] my account containing $[Amount] in funds. Your platform has [provided no explanation/cited vague policy violations/failed to complete investigation] despite my providing [identity verification/source of funds documentation/etc.].
I have been unable to access my funds for [X] days/weeks despite [multiple support contacts/document submissions/appeals]. This constitutes wrongful withholding of my property.
LEGAL ANALYSIS
Electronic Fund Transfer Act (15 U.S.C. 1693)
[For unauthorized access:] Under EFTA and Regulation E (12 C.F.R. 1005.6), I am not liable for unauthorized electronic fund transfers. I reported this fraud within [X] days, well within the 60-day period that preserves full protection. Your platform is required to conduct a prompt investigation and reimburse unauthorized transfers.
[For scam-induced transfers:] Recent CFPB guidance indicates that transfers induced by impersonation fraud may qualify as unauthorized when the consumer was deceived about the nature or recipient of the transfer. Your denial fails to adequately consider this evolving standard.
California Consumer Protection Law
Your handling of my dispute also violates California law:
1. California Consumer Legal Remedies Act (Civil Code 1750): [Denying valid fraud claims/Misrepresenting account protections/Failing to honor stated policies] constitutes unfair and deceptive practices.
2. California Unfair Competition Law (B&P Code 17200): Your [systematic denial of fraud claims/failure to investigate/wrongful account freeze] constitutes unlawful, unfair, and fraudulent business practices.
3. Breach of Contract: Your [User Agreement/Terms of Service] requires [proper investigation of disputes/protection against unauthorized access/reasonable basis for account restrictions]. Your failure to [investigate/reimburse/unfreeze] breaches these contractual obligations.
DEMAND
I demand that [Venmo/Cash App]:
1. Immediately reimburse $[Amount] to my account [or provide method of payment if account closed];
2. [For freeze: Immediately restore full access to my account with all funds];
3. Provide a detailed written explanation of your investigation and findings;
4. Confirm that no negative information has been or will be reported regarding this dispute;
5. Compensate me for consequential damages including [overdraft fees/missed payments/time spent] totaling $[Amount if applicable].
DEADLINE AND CONSEQUENCES
If I do not receive the demanded relief within fourteen (14) calendar days of this letter, I will pursue all available remedies including:
- Arbitration under your User Agreement/Terms of Service seeking actual damages, statutory damages, and attorney fees
- Complaint to the California Department of Financial Protection and Innovation (DFPI)
- Complaint to the Consumer Financial Protection Bureau (CFPB)
- Complaint to the California Attorney General
- Public reviews documenting your failure to protect consumers
- Any other available legal remedies
DOCUMENT PRESERVATION
This letter constitutes formal notice to preserve all documents related to my account, the disputed transactions, your investigation, and all internal communications regarding this matter.
REGULATORY FILINGS
I have filed or will file complaints with:
- California DFPI (Complaint No. [if filed])
- FTC ReportFraud.ftc.gov (Reference No. [if filed])
- [Local] Police Department (Case No. [if filed])
Please direct all correspondence to [Your Email] and the address above.
Sincerely,
[Your Signature]
[Your Printed Name]
Enclosures:
- Transaction records/screenshots
- Scam communications (if applicable)
- Platform support correspondence
- Police report (if filed)
- FTC/DFPI complaint confirmations (if filed)
- Timeline of events and contacts
Sending Instructions: Send your demand via certified mail with return receipt AND email to the legal department. Keep copies of everything. Both Venmo and Cash App have arbitration clauses - your demand letter creates the record needed if you must proceed to arbitration.
Platform-Specific Addresses: Venmo/PayPal: PayPal, Inc., Attn: Legal Department, 2211 North First Street, San Jose, CA 95131 Cash App/Block: Block, Inc., Attn: Legal Department, 1955 Broadway, Suite 600, Oakland, CA 94612
Attorney Services for Venmo & Cash App Disputes
I handle California Venmo and Cash App fraud disputes personally. These cases require understanding of federal payment regulations, California consumer protection law, and each platform's specific policies and arbitration procedures.
Case Evaluation
Analyze whether transactions qualify as unauthorized under EFTA
Evaluate scam-induced transfer claims under evolving standards
Venmo and Cash App fraud cases are typically handled on:
Flat Fee: $450 for demand letter preparation and initial platform response
Hourly Rate: $240/hour for complex cases, regulatory complaints, or arbitration preparation
Contingency: 33% of recovery for cases requiring arbitration or extended negotiation
Free Case Review: I review Venmo and Cash App fraud cases at no charge to assess whether legal action is likely to succeed. Email your transaction records, scam communications, and platform correspondence to owner@terms.law with "Venmo Fraud" or "Cash App Fraud" in the subject line.
Time Sensitivity: EFTA has strict reporting deadlines that affect your rights. Contact me promptly if you have experienced unauthorized transactions - delay can reduce or eliminate your legal protections.