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Zelle fraud class action lawsuits overview:
- Who: Bank customers recently filed class action lawsuits against Capital One, Bank of America, Wells Fargo, Navy Federal Credit Union and Zelle.
- Why: Customers claim the financial institutions do not do enough to protect them from fraudulent activity on Zelle’s digital peer-to-peer payment platform.
- Where: The class action lawsuits have been filed in U.S. federal courts.
Consumers filed a number of class action lawsuits recently against financial institutions accused of not protecting account holders who were financially injured after being defrauded while using the digital peer-to-peer payment platform Zelle.
An influx of scams targeting Zelle users prompted a pair of U.S. senators to write a letter in April to the owner of Zelle, warning it about the amount of fraud perpetrated on the platform.
Sens. Elizabeth Warren, D-Mass., and Robert Menendez, D-N.J., accused Zelle owner Early Warning Services LLC of not doing enough to prevent fraud from occurring on the platform.
The Democratic senators also placed blame on Zelle’s owner banks, including Capital One, JP Morgan Chase, Bank of America, Wells Fargo and Truist.
“We seek to understand the extent to which Zelle allows fraud to flourish and the steps your company is taking to increase consumer protection and help users recover lost funds,” the senators wrote.
Consumers, meanwhile, have since begun going after financial institutions, claiming they are not doing enough to protect them from falling victim of Zelle fraud.
Capital One class action accuses bank of refusal to reimburse Zelle fraud victims
Earlier this month, a Capital One customer who claims he was the victim of a Zelle scam filed a class action lawsuit against the bank, arguing it declines to reimburse account holders who are scammed or exposed to fraud on Zelle.
“Despite the plaintiff’s timely alerting Capital One of the fraud, Capital One refused to reimburse him for the losses,” the class action lawsuit states.
The consumer behind the class action lawsuit claims Capital One told him it would be unable to put a stop payment on a money transfer made through Zelle that ended up falling into the hands of a scammer.
Wells Fargo class action alleges company fails to protect customers from fraud
Also this month, a consumer filed a class action lawsuit against Wells Fargo and Zelle over claims the companies fail to protect them from scammers who target Zelle mobile payment app users.
The consumer behind the class action lawsuit claims he was scammed out of $7,500, with Wells Fargo eventually reimbursing them for $3,500, after a scammer pretending to be with the bank convinced them to send funds.
In addition to allegedly initially declining to reimburse him, the consumer argues Wells Fargo and Zelle aren’t willing to put more protections in place that would help prevent their customers from becoming fraud victims.
“The immediacy of Zelle’s service has made it a favorite primarily among consumers, but that has made it a favorite among criminals, who can access bank accounts directly,” the class action lawsuit states. “Once scammers can scare or trick their victims into sending money via Zelle, they can siphon away thousands of dollars in seconds.”
Bank Of America class action claims financial institution fails to disclose risks of Zelle
A consumer also hit Bank of America with a class action lawsuit this month that alleges the financial institution fails to disclose to its account holders the risks of using Zelle for money transfers.
Further, the consumer behind the class action lawsuit argues Bank of America declines to reimburse customers who are victims of fraud through Zelle and that there is “virtually no recourse for consumers to recoup losses due to fraud.”
Navy Federal class action accuses credit union of failing to keep reimbursement promise
Navy Federal Credit Union, meanwhile, faces claims that it fails to keep its promise that it will reimburse account holders who lose money from fraudulent activity on Zelle.
Further, the Navy Federal class action accuses the credit union of misrepresenting to its customers the safety of using Zelle for money transfers.
“(Navy Federal) misrepresents and omits a key fact about the service that is unknown to accountholders: that there is virtually no recourse for consumers to recoup losses due to fraud,” the class action states.
The consumer behind the complaint claims Navy Federal has a “secret policy” of not reimbursing account holders who suffer financial losses due to fraudulent activity on Zelle, regardless of whether or not it is reported right away.
Has your bank refused to reimburse you after you suffered financial losses due to fraud on Zelle? Let us know in the comments!
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629 thoughts onZelle fraud cases mount as consumers file class action lawsuits
OneAZ Credit Union & Zelle got me too & CU denied my claim.
I am being scammed for almost $4000.00 since 02/10/2023 and my checking account is $0.00 but because I have overdrawn protection Chase bank is pulling funds from my savings account even though I’m stating that is not me! The scammers are taking $190.00 increments at a time and Chase and Zelle are not doing anything. In fact they have said that they do not see any triggers of fraud!!! I would like to sue Chase and Zelle plus get my money back!
Omg. Withdraw all your money immediately and put it elsewhere!
I got scammed by someone pretending to be a sheriff using the actual phone number to the sheriff’s office! They convinced me I had missed Jury duty and had 2 situations for 3000 total. I have ADHD and they caught me off guard that day. He told me if I didn’t pay for my situations before arriving at the station they would take me in, because I had a warrant for my arrest! The number and situations was what really got me freaked out!
The man told me Zelle was there form of payment, and even pretended like a woman was processing the payment and told me to send it to a Jalissa Brown. Afterwards he told me the address to go, and to provide my ID with knowledge that I never received the letter for Jury duty, and I would get my money back. This happened in August of 2022, and I fought with my bank twice with to get my money back, and still nothing. The Facebook Local Sheriff posted a post recently to let everyone know of this particular scammer! I really want my $3000.00 back!! It really put a dent in my funds.
I still have my voicemail the scammer sent me trying to call earlier that day. Please someone help me get these people down and get me my money back! I definitely closed my Zelle account. They will not give you your money back!
This just happened to me today. I’m out $2500 using Zell to these scammers. And Chase will not cover my money
My elderly mother was just scammed out of $300 via Zelle
Please add me. Recent victim to a Con Edison Zelle fraud. Was told my service would be disconnected and that Con Edison would disconnect my service that Zelle was a platform to pay.
Please add me, i am out $2200. for purchase of a kitten, Zelle said to contact my bank (Bank of the West) to file complaint, bank told me there was nothing that they can do. I at least want this website reported as a scam alert so this doesn’t happen to any one else.
Please add me
Add me.
Bank of America denied my fraud claim as they said when I filed the claim the representative used the verbage “scam” vs. fraud so they denied it saying the transaction was not found to be a bank error.
The person I was dealing with posed as a Match.com representative who was attempting to refund my membership overcharge.
As this was in progress I phoned BOA fraud dept and the LISTEMED IN as it happened. The call was recorded and STILL denied my claim. $407.17 I’m out.
33 years with this bank and this is how your treated.
BANK AGAINST AMERICA MORE LIKE IT!
They should add huntington bank to that lawsuite against zella. I lost $3500 when they gave it to somebody somewhere.
I had over 12k illegally transferred out of my Wells Fargo Acct through Zelle to people I never gave permission to or was I aware of these transactions. When I found out. I immediately informed Wells Fargo and the Police. Wells Fargo became frustrated with me denied my claim and closed my account. Even though I had clear proof this was fraud. Please add me. My name is Cortney Edwards
727-303-4020 / this is a Message phone for me.
I deceived by what I thought was a Pay Pal representative. I filed a claim with my bank but based on what others are saying, it is probably lost money. Venmo $498 and Zelle $945 total.