{"id":34588,"date":"2025-07-03T06:22:09","date_gmt":"2025-07-03T06:22:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/34588\/"},"modified":"2025-07-03T06:22:09","modified_gmt":"2025-07-03T06:22:09","slug":"zelle-needs-to-fix-significant-scams-and-fraud-lawmakers-say","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/34588\/","title":{"rendered":"Zelle needs to fix \u2018significant scams and fraud,\u2019 lawmakers say"},"content":{"rendered":"

Banks are facing renewed pressure to protect their customers from scams on Zelle, the payment network owned by JPMorgan, Wells Fargo, Bank of America, Capital One, and other big banks. In letters to the banks<\/a>, Sen. Elizabeth Warren (D-MA), Sen. Richard Blumenthal (D-CT), and Rep. Maxine Waters (D-CA) asked them how often their customers report Zelle scams that originate from social media.<\/p>\n

Last year, the Consumer Financial Protection Bureau (CFPB) sued Wells Fargo, Bank of America, and JPMorgan Chase<\/a> over claims they \u201crushed\u201d Zelle\u2019s launch in 2017 and failed to protect customers from \u201cwidespread fraud,\u201d which resulted in more than $870 million lost to scams. In an attempt to protect its customers, Chase began blocking<\/a> Zelle payments over social media, where scams often<\/a> show up, last February. The CFPB dropped<\/a> its Zelle lawsuit in March after President Donald Trump\u2019s administration began dismantling the agency.<\/p>\n

\u201cBanks, including JPMorgan Chase, have historically failed to protect consumers from Zelle fraud and scams,\u201d the letters state. \u201cAccording to the CFPB\u2019s lawsuit, for example, since Zelle was created, the banks that run the payment service have not meaningfully improved their ability to detect and prevent fraud or increased their reimbursements to customers defrauded on Zelle to match the increase in fraud rates.\u201d<\/p>\n

Without the support of the CFPB, the three lawmakers are now taking matters into their own hands. They asked the banks that own Zelle, which they claim is \u201cassociated with significant scams and fraud,\u201d if they have noticed any broader trends of fraud on the payment platform, such as whether they come from social media or another source. The lawmakers are also pressing the banks for their policies on reimbursing customers who fall victim to scams on Zelle and other peer-to-peer payment networks. The banks have until July 14th to respond.<\/p>\n

\u201cZelle is leading the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law,\u201d Zelle spokesperson Eric Blankenbaker said in a statement to The Verge. \u201cThe misguided attacks by the previous leadership of the CFPB would have emboldened criminals, cost consumers more in fees, stifled small businesses and made it harder for thousands of community banks and credit unions to compete.\u201d<\/p>\n

Update, July 2nd: <\/strong>Added a statement from Zelle.<\/p>\n","protected":false},"excerpt":{"rendered":"Banks are facing renewed pressure to protect their customers from scams on Zelle, the payment network owned by…\n","protected":false},"author":3,"featured_media":34589,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[611,50,153,80,158,67,132,68],"class_list":{"0":"post-34588","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mobile","8":"tag-mobile","9":"tag-news","10":"tag-policy","11":"tag-politics","12":"tag-technology","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114787866938657125","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/34588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=34588"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/34588\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/34589"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=34588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=34588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=34588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}