Get the latest tech news
Three of the biggest US banks are facing a lawsuit for ‘widespread fraud’ on Zelle
Zelle allegedly failed to protect customers from scams.
The lawsuit cites Zelle’s designs and features, including a “limited” identity verification process that involves assigning a “token” to a user’s email address or mobile phone number that they can use to verify their account with a one-time passcode. The CFPB accuses Zelle and the banking trio of failing to track and quickly stop criminals on the platform, as they allegedly didn’t relay information about known fraudulent transactions with other institutions in the payment network. “The CFPB’s misguided attacks will embolden criminals, cost consumers more in fees, stifle small businesses and make it harder for thousands of community banks and credit unions to compete.”
Or read this on The Verge