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Zelle Fraud Letter Overview:
- Who: Sens. Elizabeth Warren, D-Mass., and Robert Menendez, D-N.J., wrote a letter to Zelle’s owner Early Warning Services LLC.
- Why: Warren and Menendez expressed concern over the amount of fraud occurring on Zelle, a peer-to-peer payment platform.
- Where: Zelle is used by consumers nationwide.
Sens. Elizabeth Warren, D-Mass., and Robert Menendez, D-N.J., wrote a letter to the owner of Zelle, warning that fraud is “widespread” on its peer-to-peer payment platform.
The Democratic senators alleged in their letter to Al Ko, owner of Zelle-owner Early Warning Services LLC, that his company has failed to do enough to prevent fraud on its platform or to help consumers recover lost funds.
“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.
In addition to faulting Early Warning Services, Warren and Menendez also placed blame on its owner banks, including Capital One, Wells Fargo, Bank of America, JPMorgan Chase and Truist.
Zelle touts its connection with a range of different U.S. banks as making it easier for platform users who don’t belong to the same bank to easily transfer money between each other, Law360 reports.
Senators Express Concern Over Zelle’s ‘Ongoing Failure’ To Prevent Fraud
The senators, however, expressed concern in their letter over “the ongoing failure by Zelle or the banks that own this service to address these scams and provide appropriate redress to defrauded consumers.”
A variety of reported fraudulent schemes have been perpetrated on Zelle’s platform, according to Warren and Menendez, including ones done by “romance scammers” and “cryptocurrency con artists,” among others.
“The policies of your company and the banks that own and operate on it create a confusing and unfair environment for consumers, who are already facing ‘rampant’ and sophisticated threats from spammers on the platform,” the senators said.
Warren and Menendez have asked Early Warning Services to provide them with the procedures they have in place to prevent fraud on Zelle, as well as its policies for determining who is eligible to receive a refund.
Early Warning Services is also being asked to reveal its fraud statistics from over the past five years.
Have you been the victim of fraud while using Zelle? Let us know in the comments!
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36 thoughts onZelle Fraud, Scams Rampant, Senators Warn
Zelle chase bank 299.67$ Chase doesn’t do enough to protect from Zelle fraud
Add me as well. I thought I purchasing something and they never delivered on good and Capital ones says cant do anything because you wired the money.
Zell scam $2000 real estate agent posed as a seller.