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CFPB sues America's largest banks for 'allowing fraud to fester' on Zelle

Bank of America, JPMorgan and Wells Fargo are accused of implementing "shoddy safeguards" on the electronic payments platform, which have cost Americans.

“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. Poor identity verification methods, which have allowed bad actors to quickly create accounts and target Zelle users. The platform has previously come in for criticism by Senate Democrats: Most recently, Sen. Richard Blumenthal, D-Connecticut, found customers had disputed over $372 million in scams and fraud in 2023 — with nearly three-quarters of the claimed losses never reimbursed by the banks.”

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