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Bank of America class action lawsuit overview:
- Who: Bank of America faces a Zelle fraud class action lawsuit.
- Why: The suit alleges Bank of America does not disclose the risks of Zelle fraud and refuses to reimburse fraud victims.
- Where: The Bank of America class action lawsuit was filed in California federal court.
Bank of America does not notify account holders it does not protect them from fraud through payment platforms like Zelle and Venmo, according to a recent class action lawsuit.
Zelle is a person-to-person money-transfer app owned and operated by seven of the largest banks in the United States, including Bank of America, the lawsuit states. The approximately 1,500 member banks and credit unions encourage account holders to sign up for Zelle, marketing the app as a convenient, secure and free way to transfer money.
“This is false,” the Bank of America class action lawsuit says. “In fact, there are huge, undisclosed security risks of using the service that BofA omitted from its marketing push to get its account holders to sign-up for the service.”
The class action lawsuit points to a recent New York Times investigation that reportedly found banks are well aware of the widespread fraud associated with Zelle and Venmo networks.
Bank of America class action claims company provides ‘virtually no recourse’ for Zelle fraud
Plaintiff Mohammad Al-Ramahi claims Bank of America fails to notify account holders there is “virtually no recourse for consumers to recoup losses due to fraud” when they transfer money with the Zelle app, even if they report those losses in a timely fashion.
Al-Ramahi says he was the victim of an employment scam in which he was given a $4,950 check, which he deposited into his Bank of America account. The bank allegedly cleared the check and allowed him to access the funds.
The purported employer then reportedly initiated fraudulent transactions by asking Al-Ramahi to repay the money through Zelle and Venmo. He complied with the request, believing it to be part of his new job. Several days later, Bank of America reportedly notified the plaintiff the check was bad, deducted $4,950 from his checking account, charged him a $12 fee and refused to reimburse him for his losses.
Al-Ramahi says he would not have signed up for Zelle if he had known Bank of America actively misrepresented the app as safe and secure.
He filed his class action lawsuit on behalf of himself and a proposed class of Bank of America account holders who incurred losses through Venmo and/or Zelle fraud.
Banks such as Capital One and Wells Fargo also face Zelle class action lawsuits for allegedly failing to protect customers from fraud.
What do you think of the allegations that Bank of America fails to reimburse account holders even though they know these “safe” apps like Zelle and Venmo are used for widespread fraud? Tell us about it in the comments below.
Al-Ramahi is represented by L. Timothy Fisher, Philip L. Fraietta and Julian C. Diamond of Bursor & Fisher PA.
The Bank of America Zelle fraud class action lawsuit is Al-Ramahi v. Bank of America NA, Case No. 5:22-cv-03118, in the U.S. District Court for the Northern District of California.
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114 thoughts onBank of America class action claims company does not disclose risks of Zelle fraud
Please add me to the Zelle lawsuit. BOA has ruined me financially from allowing my accounts to be drained
Please add me to this lawsuit I was scammed for almost 2k and Bank of America didn’t inform me about the scans nor helped
Please add me to the bank of America class action suit regarding zelle scams.
Add me to class action lawsuit! I too was scammed using Zelle and have opened fraud case with BOA. I’m a PBIG client at Merrill / BOA so hoping they will make this right but ALL OF US deserve to be reimbursed!
Can others be added to the lawsuit? 9/5/2022 the scam got $1700. Today 9/14/2022, BOA sent out a mass email to customers warning about the scam. I just read news articles BOA has known for months about this scam? Has BOA been hacked? Our personal info? The scam new all my bank account info, all my personal info. Information only an actual BOA employee should have/know??
Add me to the lawsuit against Bank of America. Zelle fraud. I lost $3500 and have been denied from B of A 3 times. I just heard from them today.
On 9/5/2022, I lost $1700. Can others be added to the class action?
I was scammed out of $2500 from a fraud Apple customer service representative using zelle .. I reported it to every government agency i can find .. Bank of America denied me..
I was scammed on 9/5/2020. $1700. Today 9/14/2022, I received an email from BOA advising of this scam. However, I read articles that this scam was known months ago and BOA did not notify until until today??
Please add me too ! I was scammed through Zelle and Sent $3500 to scammer posing as Bank of America , that was all my money please
Please add me to the lawsuit. 10k taken from me last week! I need help getting my money back!
I’m a victim of Zelle fraud too. I got a fraud alert that promoted a phone call from unknown number. The caller was a “fraud employee” but really it was an impersonator. I’ve been trying to get my $3500 back since May 23 and Bank of America blames me for the transaction. Despite all the evidence that I was tricked. Zelle is a major scam that is likely in cahoots with the fraudsters themselves. Upon filing with the CFPB they offer to investigate but offer no findings. Instead they encourage you to call the thieves you don’t know and to file a police report. Not only did they deny my claim. They also called me from the highest levels of “customer service” from unknown and spam risk marked calls. I brought this to their attention every single time, particularly because the calls seemed sketchy. They never addressed this. Some how I’m supposed to trust these people when they also call from their personal phones. Something is incredibly wrong with the banks and their child Zelle. P2P needs to be regulated. Fraud shouldn’t be this easy. Meanwhile, Zelle is becoming the king when it comes to sending money. They shouldn’t be allowed to conquer the market when they don’t even protect their consumers