CFPB Sues Big Banks over Zelle Fraud
The Consumer Federal Protection Bureau (CFPB) has filed a lawsuit against three massive banks and the operators of Zelle, Early Warning Services, for failing to protect Americans from fraud on the Zelle network. The suit alleges that three of the banks that own Zelle – Chase Bank, Bank of America, and Wells Fargo Bank – did not implement proper safeguards against payment fraud on the app and also failed to adequately investigate complaints of fraud or assist customers in recovering their money. The banks even told consumers they should contact the fraudsters (i.e., the criminals) directly to get their money returned.
