Source: Stacy Cowley, N.Y.Times ( Paid Registration )

Reports of scams and fraud on the bank-owned payment network Zelle are surging, but banks have refused to refund customers for most of their losses — at times outright flouting a federal consumer protection law, according to a report released by Senator Elizabeth Warren of Massachusetts.

Banks draw a distinction between what they consider scams — when a customer is tricked into sending money to a thief — and fraud, when an unauthorized person gains access to a consumer’s account and siphons off cash. Banks typically won’t refund customers who were scammed, but they are required by law to repay customers whose money is stolen through an electronic transfer that they did not authorize.

Read Full Article: Few customers get refunds for Zelle fraud