Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report issued Monday by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle.
The report also found that the large banks that partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams. For instance, less than half of the money customers reported being sent via Zelle without authorization was being reimbursed.
Further, in the cases where it's clear funds had been taken out of customers' account without authorization, only 47% of those dollars were ever reimbursed.Since being launched in June 2017, Zelle has become a popular way for bank customers to send money to friends and family. Almost $500 billion in funds were sent via Zelle in 2021, according to Early Warning Services, the company that operates Zelle.
The cases of growing fraud and scams at Zelle have been highlighted in previous news reports, including two by The New York Times. But those stories cited mostly anecdotal evidence. Early Warning Services has previously said that 99.9% of all transactions happen without complaints of fraud or scams. A group of Democratic senators asked for usage data on Zelle after the Times' report.
Warren made fireworks at a Congressional hearing last month involving most of the CEOs of the big Wall Street banks that use and partly own Zelle, where she pushed each of the CEOs to release fraud and scam incident data at their banks. The seven are: JPMorgan Chase, Wells Fargo, PNC Financial, Truist, Bank of America, Capital One and U.S. Bank.
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Fraud, scam cases increasing on Zelle, Senate report findsThe report also found that the large banks that partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams.
Read more »
Fraud, scam cases increasing on Zelle, Senate report findsIncidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report issued Monday by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle. The report also found that the large banks that partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams. For instance, less than half of the money customers reported being sent via Zelle without authorization was being reimbursed.
Read more »
Fraud, scam cases increasing on Zelle, Senate report findsIncidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report coming out Monday from the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle.
Read more »
Fraud, scam cases increasing on Zelle, Senate report findsNEW YORK (AP) — Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report issued Monday by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle.
Read more »
Fraud, scam cases increasing on Zelle, Senate report findsIncidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report coming out Monday from the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle.
Read more »