Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
JPMorgan Chase, Wells Fargo and Bank of America Customers Lose $870,000,000 To Scammers on Zelle, Forcing Victims To ‘Fend for Themselves’: CFPB Laws

JPMorgan Chase, Wells Fargo and Bank of America Customers Lose $870,000,000 To Scammers on Zelle, Forcing Victims To ‘Fend for Themselves’: CFPB Laws

Daily HodlDaily Hodl2024/12/19 16:00
By:by Daily Hodl Staff

Customers at JPMorgan Chase, Wells Fargo and Bank of America have collectively lost $870 million to scammers on Zelle in the last seven years, according to a powerful US bank regulator.

The Consumer Financial Protection Bureau (CFPB) says it’s suing the three banking giants and Zelle’s parent firm for allegedly failing to protect people from widespread fraud on the popular payments network.

The lawsuit, which has been anticipated for months, alleges hundreds of thousands of the banks’ customers filed fraud complaints and were largely denied assistance, with some being told to contact the fraudsters directly to get their money back.

“Bank of America, JPMorgan Chase, and Wells Fargo also allegedly failed to properly investigate complaints or provide consumers with legally required reimbursement for fraud and errors.

The CFPB is seeking to stop the alleged unlawful practices, secure redress and penalties, and obtain other relief.”

The CFPB alleges widespread consumer losses and security failures on the part of the banks, stating the lenders limited identity verification measures, allowed repeat offenders to hop between banks, ignored red flag warnings from customers and abandoned customers after fraud occurred.

CFPB Director Rohit Chopra says the banks, which co-own Zelle, rushed to launch the platform without properly addressing security concerns.

“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle.

By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves.”

Zelle says it’s fully prepared to defend itself in court.

“The CFPB’s attacks on Zelle are legally and factually flawed, and the timing of this lawsuit appears to be driven by political factors unrelated to Zelle.

Zelle leads the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law.”

JPMorgan Chase has previously said it may sue the CFPB over the Zelle investigation, stating the agency is going “above and beyond what the law requires.”

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X , Facebook and Telegram

Surf The Daily Hodl Mix

Generated Image: Midjourney

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

EU Commission approves Nvidia’s Run:ai acquisition

Share link:In this post: This followed a probe over competition concerns raised by Italian regulators. The EU Commission unconditionally approved the transaction. The Nvidia case is one of the many other probes into big tech firms’ acquisition of smaller companies.

Cryptopolitan2024/12/21 09:22

SEC hits Jump Trading with $123m fine over TerraUSD scandal and Luna misconduct

Share link:In this post: SEC has fined Jump Trading $123 million over its role in the TerraUSD scandal. Tai Mo Shan agreed to settle the fine without admitting or refuting the charges. Jump Trading made more than $1 billion in profit in an arrangement with Terraform.

Cryptopolitan2024/12/21 09:22

Shiba Inu advances DeFi strategy with Chainlink partnership

Chainlink's CCT standard allows Shiba Inu tokens to achieve interoperability and expand across 12 blockchains.

CryptoSlate2024/12/21 08:44

SEC Commissioner predicts early improvements for crypto ETFs under new leadership

Changes such as staking for Ethereum ETFs and in-kind redemptions for Bitcoin products will likely to happen early on, says Hester Peirce.

CryptoSlate2024/12/21 08:44