Official announcements from the banks or legal documents confirming settlement

CFPB Sues JPMorgan, Bank of America, Wells Fargo Over Zelle Fraud Losses Exceeding $870 Million Since 2017

Dec 20, 2024, 05:18 PM

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against JPMorgan Chase, Bank of America, Wells Fargo, and Zelle's parent company, Early Warning Services, for failing to protect consumers from widespread fraud on the Zelle payment platform. According to the CFPB, customers have collectively lost more than $870 million to fraud since Zelle's launch in 2017. The lawsuit alleges that the banks did not adequately investigate fraud complaints or provide reimbursements to victims, allowing fraudulent activities to proliferate on the peer-to-peer payment network. The CFPB's action comes amid heightened scrutiny of the banks' practices and follows a series of recent initiatives aimed at enhancing consumer protections in the financial sector.