CFPB sues America's largest banks for 'allowing fraud to fester' on Zelle
Source: NBC News
Dec. 20, 2024, 12:04 PM EST / Updated Dec. 20, 2024, 3:59 PM EST
The Consumer Financial Protection Bureau is suing America's three largest banks, accusing the institutions of failing to protect customers from fraud on Zelle, the payment platform they co-own.
According to the suit, which also targets Early Warning Services LLC, Zelle's official operator, Zelle users have lost more than $870 million over the network’s seven-year existence due to these alleged failures.
“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” said CFPB Director Rohit Chopra in a statement. “By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves.”
Read more: https://www.nbcnews.com/business/business-news/cfpb-sues-bank-of-america-jpmorgan-wells-fargo-over-zelle-fraud-rcna185007
Link to CFPB PRESS RELEASE - CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo for Allowing Fraud to Fester on Zelle