Zelle headquarters in Scottsdale, Arizona. Credit: JHVEPhoto/Adobe StockCFPB Takes on BoA, Wells Fargo and JPMorgan Chase Over Zelle Fraud
The agency said they will seek cash damages to repay consumer losses over fraudulent activity. It claims that customers at the banks lost more than $870 million to fraud since Zelle's inception.
December 20, 2024 at 05:12 PM
3 minute read
The U.S. Consumer Financial Protection Bureau sued three of the nation’s largest banks over fraud on Zelle, saying they exploited users’ expectations of security to get them to sign up for the payment platform, without enacting appropriate safeguards.
In a Friday news conference, CFPB Director Rohit Chopra alleged that Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo, as well as Zelle operator Early Warning Services LLC, allowed fraud to flourish on Zelle and “played dumb” when customers reported fraudulent activity on their accounts.
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