Block Rebuts Hindenburg, Says Only 2.4% of Accounts Are on Watch

Block Inc. said its compliance and risk teams placed just 2.4% of Cash App accounts on a watch list last year, a disclosure that comes as the payment giant fights Hindenburg Research’s accusations of widespread fraud on its platform.

The firm said it’s difficult to offer definitive estimates of the amount of fraud and illicit activity on its payments platform and instead pointed to its “denylist,” which allows Block to prevent customers from sending and receiving funds by using a Cash App Card, buying stocks or Bitcoin, or taking out a loan.

“We have additional controls to help prevent ...