JPMorgan, Wells Fargo, BofA facing federal lawsuit over Zelle payment network fraud
Associated PressA federal regulator sued JPMorgan Chase, Wells Fargo and Bank of America on Friday, claiming the banks failed to protect hundreds of thousands of consumers from rampant fraud on the popular payments network Zelle, in violation of consumer financial laws. The CFPB claims that the banks violated federal consumer financial laws governing electric funds transfers, which require banks conduct “reasonable investigations” when consumers report transaction errors, and the agency’s prohibition on unfair acts or practices by failing to take steps to prevent and address fraud on Zelle. Bank of America said it strongly disagreed with the lawsuit, which it said would add “huge new costs” on banks and credit unions offering the free Zelle service to clients. In a statement, New York-based JPMorgan said the CPFB was “overreaching its authority by making banks accountable for criminals.” San Francisco-based Wells Fargo declined to comment on the lawsuit.
History of this topic
Wells Fargo, Chase, Bank of America sued over alleged unchecked fraud on Zelle app
LA Times
US Fed sues JPMorgan, Wells Fargo, BofA over Zelle payment network fraud
Hindustan Times
JPMorgan, Bank of America, Wells Fargo sued for alleged fraud on Zelle
Salon
US consumer watchdog sues big banks over ‘widespread’ fraud on Zelle app
Al Jazeera
In a lawsuit, CFPB says 3 top U.S. banks failed to protect consumers from Zelle fraud
NPR
Sen. Warren says the big banks that own Zelle aren't doing enough to protect users
NPR
Fraud, scam cases increasing on Zelle, Senate report finds
Associated Press
Fraud, scam cases increasing on Zelle, Senate report finds
The Independent
Fraud, scam cases increasing on Zelle, Senate report finds
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