Banks face renewed pressure to protect their customers from Zelle’s fraud, the JPMORGAN, Wells Fargo, Bank of America, and Capital One and other large banks. in Messages to banksSenator Elizabeth Warren (D-MA), Senator Richard Blumental (D-CT), and MP Maxine Waters (D-CA) asked them about the number of times their colleagues are about fraud that arises from social media.
Last year, Consumer Protection Office (CFPB) A lawsuit against Wales Fargo, Bank of America, and JPMorgan Chis The allegations that they “rushed” the launch of Zelle in 2017 and failed to protect customers from “widespread fraud”, which led to the loss of more than $ 870 million in fraud. In an attempt to protect its customers, Chase began to ban Zel payments on social media, Where fraud often It appears, last February. CFPB decreased Zel suit in March after the administration of President Donald Trump began dismantling the agency.
“The banks, including JPMorgan Chase, historically, have failed to protect consumers from Zelle Faud and Sugams,” State Letters. “According to the CFPB lawsuit, for example, since the creation of Zelle, banks that run the payment service have not beneficially improved their ability to discover and increase fraud or increase their payment of customers to fraud on Zelle to suit the increased fraud rates.”
Without support CFPB, the three legislators now take matters with their own hands. They asked the banks that have Zel, which they claim are “linked to fraud and great fraud”, if they notice any wider directions for fraud on the payment platform, such as whether they come from social media or another source. Legionships also press banks for their policies on compensation for clients who are victims of fraud on Zelle and peer payment networks. The banks have until July 14 to respond.
“Zell is leading anti -fraud and fraud and has the pioneering payment policies in the industry that go beyond the law,” Zelbaker, Eric Blanckbakir, said in a statement. freedom. “The misleading attacks by the previous leadership of CFPB had encouraged criminals, cost consumers more fees, strangled small companies and made it difficult for thousands of community banks and the credit union to compete.”
Update, 2 July: A statement from Zelle added.
