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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
I was scammed out of 1400$ through Zelle. I called my bank, and they couldn’t do anything, and once I called Zelle’s customer service, and they told me there was nothing they could do about it. No reimbursement or anything. I filed a police report and all.
I was scammed out of $1000.00 at USAA Bank when I used Zelle. I reported the scam charge minutes after it happened, it was showing as “Pending” on my account, but the customer service rep said it was too late to stop the transfer. I also appealed the transaction to both USAA Bank security and Zelle. Both rejected to appeal. I have documentation of the 2 transactions. I would like to see USAA Bank added to this lawsuit. I was not informed of the risk of using Zelle by my bank and trusted them to protect me.
Yes me!!!
Yes, this happened to me last January 2021. It turns out that Zelle automatically installed its app to my Capital One app without even asking me. Then when I reported the scheme, Zelle said to contact Capital One, and Capital One said to contact Zelle. They were playing all this back and forth. I was like no, you both should be liable and able to trace where the money went and reverse it. They are like we can’t. I said that’s the most stupidest thing I’ve ever heard. I’ve lost of $1,300. CapitalOne is dumb, and so is Zelle. Customer service is more of a disservice. If you do have a class action, definitely add me.
Yes, $3200 through Chase. I had to change my account number and open a new checking account.
Happen to me yesterday
$3100 was taken.
Yes! Fifth Third Bank – Zelle is horrendous and these banks DO NOT follow the law and THEY created Zelle!!
I am not stopping until something is done about the lack of protection and help they provide!!! Horribly unethical!!!!
This happened to me today.
My daughters school tuition for $3500 was stolen overnight.
That’s messed up got me the same way for $3150 did the back refund you ?
Yes. Fifth Third Bank. $1,000. Clearly unauthorized transactions neither bank nor Zelle will reimburse.
This happened to me today!!!
Contact me! Amykramer96@icloud.com
Yes thru Wells Fargo 4500 to Zelle and over 500 In interest late fees by wells fargo