Banks using the Zelle payment app started scam-based refunds

<img width="250" height="167" src="https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282-250×167.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282-250×167.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282-700×467.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282-768×512.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282-245×163.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282-500×333.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/11/FIN-LP-Banks-using-the-Zelle-payment-app-started-scam-5506807761-iStock-1413428282.jpg 1254w" sizes="(max-width: 250px) 100vw, 250px" /><p>Owned by seven banks, including <a href="https://www.leaprate.com/financial-services/exchanges/russia-to-be-excluded-from-all-jpmorgan-fixed-income-indexes/" target="_blank" rel="noopener">JPMorgan</a> Chase (JMP.N), the Bank of America (BAC.N), and Wells Fargo (WFC), Zelle is a peer-to-peer payment system. Scammers, claiming to be official representatives, such as banks, agencies, or service providers, tricked Zelle users into transferring money to these quasi-bodies.</p>
<p>According to federal law, banks must reimburse their clients for unauthorised payments. However, existing regulations do not provide for such reimbursement if clients themselves transfer money.</p>
<p>Zelle indicated at the end of August that it will be implementing a new reimbursement benefit for specific types of scams. The company did not however provide details as it feared new imposter scams posing as fake scam claims.</p>
<p>This new policy denotes some major changes and implies it is unreasonable to expect banks to refund monies where customers were duped into fake transfers. However, after a report in the New York Times grabbed her attention, Senator Elizabeth Warren and other lawmakers started investigating the scam claims against Zelle.</p>
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<p>According to these probes, Zelle users lost roughly $440m in 2021 alone. Reuters reported that during a senate hearing last year, Senator Warren told Jamie Dimon, chief executive officer of JPMorgan Chase, that they produced the “perfect weapon” for scammers.</p>
<p>In 2022, impersonator fraud was the most prevalent type of fraud in the US, with an estimated $2.6bn in losses.</p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/banks-using-the-zelle-payment-app-started-scam-based-refunds/">Banks using the Zelle payment app started scam-based refunds</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>