Zelle, Major Banks Fail to Assist Most Fraud Victims: Senate Report

The U.S. Senate Permanent Subcommittee on Investigations published a 62-page report on July 24 and concluded that money-transferring application Zelle and the three major banks that own the platform have not done enough to stop fraud and reimburse defrauded victims. Following a 13-month investigation into the payment app, the probe found that consumers who fell victim to scams were not adequately reimbursed by financial institutions. The report revealed that Bank of America, JPMorgan Chase, and Wells Fargo—the principal owners of the payment network—collectively reimbursed 38 percent of the $166 million submitted fraud disputes in 2023. In addition, nine out of 10 consumers who disputed a transaction as a scam last year were not reimbursed....