Released: December 23, 2024

CFPB sues big banks over Zelle fraud losses

Source: Susan Tompor, Detroit Free Press

The Zelle payment app opened the door for crooks and con artists to steal hundreds of millions of dollars from consumers over several years, and some big banks are to blame for a chaotic rush to roll out the platform, according to the Consumer Financial Protection Bureau (CFPB).

Hundreds of thousands of consumers filed complaints after getting hit by fraud, according to the CFPB, and they were largely denied assistance. In some cases, the CFPB said, some consumers actually were told to contact the fraudsters directly to recover their money.  The CFPB's complaint takes aim at how the Zelle system itself worked and allegedly enabled fraud.

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