Senator Richard Blumenthal is accusing major banks of turning a blind eye to fraud on the popular payment network Zelle. He claims that banks like JPMorgan Chase, Wells Fargo, and Bank of America are putting profits over customer protection.
Zelle Fraud is Costing Customers Millions
Blumenthal, who chairs the Senate Subcommittee on Investigations, says that in 2022, customers reported losing a whopping $456 million to Zelle scams. However, the banks only reimbursed a paltry $341 million.
Banks to Face Questions at Congressional Hearing
The banks will be grilled at a Congressional hearing on July 23rd. Blumenthal wants answers about why they haven’t done more to protect customers from fraud. He says, “The banks play ‘heads I win, tails you lose,’ as sophisticated scammers reap the benefits and consumers lose hard-earned money.”
Zelle’s CEO and Bank Executives to Testify
The hearing will feature testimony from Zelle’s CEO, Cameron Fowler, as well as top executives from JPMorgan Chase, Bank of America, and Wells Fargo. They will be questioned about their responsibility for protecting customers and why they haven’t done more to prevent fraud.
Blumenthal Calls for Action
Blumenthal is calling for action to protect consumers from Zelle fraud. He argues that “instant payments must not mean instant losses for consumers.”
