Close Menu
  • Home
  • UNSUBSCRIBE
  • News
  • Lifestyle
  • Tech
  • Entertainment
  • Sports
  • Travel
Facebook X (Twitter) WhatsApp
Trending
  • Granit Xhaka to Sunderland: Black Cats complete £17.3m transfer deal for Bayer Leverkusen midfielder | Football News
  • Must-Have Fall Fashion at the Nordstrom Anniversary Sale
  • Federal food assistance program may slow cognitive decline, study suggests
  • Google has turned 2 billion smartphones into a global earthquake warning system — it’s just as effective as seismometers
  • Justice Department escalates feud with federal Judge James Boasberg over misconduct
  • Nothing CMF Watch 3 Pro restocked — best-ever price live now
  • England vs India: Ben Stokes to miss fifth Test due to shoulder injury with Jofra Archer also missing | Cricket News
  • TikToker Frames Husband’s Tattooed Skin After His Death
Get Your Free Email Account
Facebook X (Twitter) WhatsApp
Baynard Media
  • Home
  • UNSUBSCRIBE
  • News
  • Lifestyle
  • Tech
  • Entertainment
  • Sports
  • Travel
Baynard Media
Home»Tech»Zelle payment fraud gets major banks sued by the CFPB
Tech

Zelle payment fraud gets major banks sued by the CFPB

EditorBy EditorDecember 21, 2024No Comments2 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
Share
Facebook Twitter LinkedIn Pinterest Email

Zelle, the payments app you likely use primarily to send rent to your landlord, is at the center of a lawsuit announced Friday by the Consumer Financial Protection Bureau (CFPB).

The CFPB is suing the fintech firm Early Warning Services — the bank-owned company that runs Zelle — as well as JPMorgan Chase, Bank of America, and Wells Fargo, claiming that customers of the banks lost more than $870 million over Zelle’s seven-year existence.

A statement from the CFPB said Zelle and the banks failed “to protect consumers from widespread fraud on America’s most widely available peer-to-peer payment network,” claiming Zelle was rushed to market “to compete against growing payment apps such as Venmo and CashApp, without implementing effective consumer safeguards.”

Mashable Light Speed


Tweet may have been deleted

“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” said CFPB Director Rohit Chopra in the 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.”

A Senate report over the summer noted that the banks reimbursed just 38 percent of fraud claims on Zelle. Banks often don’t pay for claims by noting that customers were scammed into making authorized payments, which the banks aren’t required to reimburse, CNBC reported.

“The banks failed to fix glaring flaws in their systems even as hundreds of thousands of customers filed complaints about fraud,” Chopra told reporters on Friday, via CNBC. “The banks knew their customers were having their money stolen, but since they weren’t bearing the cost of these losses themselves, they dragged their feet on fixing the problems.”

The banks and Zelle, meanwhile, have pushed back against the suit, with Early Warning Services calling it “meritless” and a JPMorgan Chase spokesperson telling The Hill it was “a last ditch effort in pursuit of [the CFPB’s] political agenda”



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleMotherwell 1-1 Kilmarnock
Next Article What do you know about psychology’s most infamous experiments? Test your knowledge in this quiz.
Editor
  • Website

Related Posts

Tech

Nothing CMF Watch 3 Pro restocked — best-ever price live now

July 30, 2025
Tech

OpenAI launches personalized tutor version of ChatGPT

July 30, 2025
Tech

Get BitMar — find free movies and TV shows online for £11.24 for life

July 30, 2025
Add A Comment

Comments are closed.

Categories
  • Entertainment
  • Lifestyle
  • News
  • Sports
  • Tech
  • Travel
Recent Posts
  • Granit Xhaka to Sunderland: Black Cats complete £17.3m transfer deal for Bayer Leverkusen midfielder | Football News
  • Must-Have Fall Fashion at the Nordstrom Anniversary Sale
  • Federal food assistance program may slow cognitive decline, study suggests
  • Google has turned 2 billion smartphones into a global earthquake warning system — it’s just as effective as seismometers
  • Justice Department escalates feud with federal Judge James Boasberg over misconduct
calendar
July 2025
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031  
« May    
Recent Posts
  • Granit Xhaka to Sunderland: Black Cats complete £17.3m transfer deal for Bayer Leverkusen midfielder | Football News
  • Must-Have Fall Fashion at the Nordstrom Anniversary Sale
  • Federal food assistance program may slow cognitive decline, study suggests
About

Welcome to Baynard Media, your trusted source for a diverse range of news and insights. We are committed to delivering timely, reliable, and thought-provoking content that keeps you informed
and inspired

Categories
  • Entertainment
  • Lifestyle
  • News
  • Sports
  • Tech
  • Travel
Facebook X (Twitter) Pinterest WhatsApp
  • Contact Us
  • About Us
  • Privacy Policy
  • Disclaimer
  • UNSUBSCRIBE
© 2025 copyrights reserved

Type above and press Enter to search. Press Esc to cancel.