Source: Susan Tompor, Detroit Free Press

Consumers are losing big bucks in sophisticated banking and payment app scams.

Typically, you would think many scams would be treated as unauthorized transactions. But banks become far more difficult for consumers to deal with when they have been tricked into giving access to an account, say, by providing codes that are texted during the scam or other key account information.

In June 2023, Zelle expanded protection to some fraudulently induced transfers by requiring 2,100 bank and credit union participants to reimburse consumers for "qualifying imposter scams," according to Early Warning Services, the network provider of Zelle. Specifics on what's covered as an "imposter scam" were not disclosed.

Read Full Article: Hard to reverse peer-to-peer payment scams on Venmo, PayPal, Zelle