Lawmakers are pressing major banks about the prevalence of Zelle scams originating from social media. They seek details on how often customers report these scams and the banks' policies on reimbursement for victims. The Consumer Financial Protection Bureau previously sued these banks over inadequate fraud protection following Zelle's launch, which led to significant customer losses. In response, JPMorgan Chase has blocked Zelle payments related to social media. The banks are expected to respond by July 14th regarding broader trends of fraud associated with the payment platform.
According to the CFPB's lawsuit, since Zelle was created, the banks that run the payment service have not meaningfully improved their ability to detect and prevent fraud or increased their reimbursement measures for scam victims.
Senators and Representatives have reached out to banks about the prevalence of Zelle scams originating from social media, requesting information on customer reporting trends.
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