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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
I submitted my claim, and I never heard anything and documentation
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Hello. I was scammed with Zelle through my BOA account. They went through my Huntington Bank Account to Bank of America. I have the proof and I have sent Bank of America the proof. This happened February 20, 2022. The next day was President’s Day so the banks were closed. I have tried 5 times thus far. The last customer service representative I spoke with; Joe, actually laughed at me. What can I do? Please help! Thank you, Gail Miller . 12/30/22
Will you all add me to the list
I was just scammed through Zelle. With Bank of America on Dec 13,2022. The has told me that there is nothing they can do.
Bank of America close my account and told me the reason it was bank manager decision defrauding and Zelle. I lost over $3000 due to the Zelle scam. Can I please be added to the lawsuit?
Add me to all Bank of America lawsuits. The same has happened to me. I used bofa in college from 1994-1998, then when married in 2000 – 2010, I reopened in 2019, after going to bank and calling multiple times, they Never updated my phone nor email. Even when I opened my account using my latest email and phone number. They incorrectly and fraudulently did not posy my money in nor out using cash app and zelle. Retracted payments to my credit card at cap one, affecting my credit, late fees and ridiculous nsf fees of $35 many many times. I never received statements nor notifications from them. Twice at atm did not dispense my money, but they deducted it from my account immediately I showed proof of atm receipt dispensing $0, yet was charged fee for atm and not reimbursed $100 and once again charged nsf fees when they failed to instantly credit my account from funds transferred from cash app and zelle. They locked me out of my account and zelle so I could not view their illegal activity from not transferring, fees, and balances. They need to be held responsible.
I would also like to add to my claim that they kept me from getting unemployment I was receiving an unemployment and they refused to give me the money
Bank of America has managers and associates calling with information only Bank of America has . They call with Bank of America Logo with 1800 numbers, also took my Zell money from me. Then accuse me of frauding myself they took my savings as well as my checking account and I have not been reimbursed for that and they humiliated me and had adult protective services to come out to see if I was loose it so it seems to be that they’re targeting people that are over 60. Bank of America was extremely rude and not assisting me with retrieving my hard-earned money back up until today the frog calls are still coming through I no longer have a Zell account with Bank of America nor do I have a ATM card because it is compromised. I’ve heard of other senior citizens that has experienced the same thing without giving their money back to them I have been a loyal customer of Bank of America for years and to have this happen is just unconscionable I then had to open up a zelle account and checking account with Chase Bank in order to receive money from my child care clients please help us in this matter
Please add me. I was scammed $2500 through Zelle and my account had some kind of laundering using cashApp with my BOA account. Bank of America only said $100 was defrauded, and closed my account. They say there is no loss for BoA, but I am unable to get another bank account for 5 years. This is so wrong! I am innocent and need help to prove I never did any fraud!!