A federal regulator sued JPMorgan Chase, Wells Fargo and Bank of America on Friday, claiming the banks failed to protect hundreds of thousands of consumers from rampant fraud on the popular payments network Zelle, in violation of consumer financial laws.

Benzinga

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'Zelle Became A Gold Mine For Fraudsters': Consumer Financial Protection Bureau Lawsuit - JPMorgan Chase (NYSE:JPM)

The Consumer Financial Protection Bureau sued three of the nation's largest banks and the operator of Zelle last week, alleging a failure to protect consumers from widespread fraud on the peer-to-peer payment network, resulting in customer losses of more than $870 million since 2017.  The Details: The CFPB's lawsuit alleges that JP Morgan Chase & Co. (NYSE:JPM), Wells Fargo & Co. (NYSE:WFC), Bank of America Corp. (NYSE:BAC) and Early Warning Ser…

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Multnomah County

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Regulator sues Chase, Wells Fargo, Bank of America over Zelle payment fraud

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) recently filed a lawsuit against Early Warning Services, the operator of the Zelle payment platform, along with Bank of America, JPMorgan Chase, and Wells Fargo. The lawsuit alleges that these entities failed to implement effective safeguards, leading to significant fraud losses for consumers on the popular peer-to-peer payment network. According to the CFPB, Zelle, launched in 2…

MyChesCo

Fraud on a Billion-Dollar Scale? CFPB Takes on Zelle and Big Banks in Explosive Lawsuit

The Office of the Comptroller of the Currency (OCC) has issued a cease-and-desist order against Bank of America, N.A., citing significant deficiencies in the bank’s compliance with the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. The order mandates immediate corrective action. The OCC’s investigation identified unsafe and unsound practices in Bank of America’s BSA Compliance Program. The findings highlighted systemic failu…

FinanceFeeds

Bank Of America Faces Regulatory Action Over Anti-money Laundering Deficiencies - FinanceFeeds

The Consumer Financial Protection Bureau (CFPB) has sued Zelle and three major banks—Bank of America, JP Morgan Chase, and Wells Fargo—accusing them of failing to protect consumers from rampant fraud on the payment app, Detroit Free Press reported.   Zelle disputes the CFPB’s figures, arguing that many fraud reports are unsubstantiated or due to user error. I Photo: Tech Daily Wikimedia Commons     The lawsuit claims that since Zelle’s launch in…

CFPB Sues Zelle And Banks Over Consumer Fraud

The banking industry’s war on scams is a long-running fight in which businesses face fierce pressure to do more to prevent customer losses, but there are tentative signs of progress. It’s a battle in which speed is everything, and co-operation between banks, telcos, tech giants and authorities is vital. ‘Speed is everything’ Time is of the essence when fighting scammers. The rise of near-instant money transfers between bank accounts, which launc…

elrisala.com

How banks are fighting back to protect customers against fraud

Zelle has strongly criticized a lawsuit filed by the Consumer Financial Protection Bureau (CFPB), arguing that the legal action will harm consumers, small businesses, and community banks. The peer-to-peer payment service described the lawsuit as “legally and factually flawed,” asserting that it undermines efforts to combat fraud and scams while burdening financial institutions with unfair liabilities. Zelle’s Response to CFPB Allegations In a st…

Regulator sues Chase, Wells Fargo, Bank of America over Zelle payment fraud

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