#binance #JPMorgan #BankofAmerica #WellsFargo #ScamRiskWarning
JPMorgan Chase, Bank of America and Wells Fargo are failing to protect customers from hundreds of millions of dollars in scams and scams each year, according to a U.S. Senate panel.
JPMorgan Chase, Bank of America and Wells Fargo are failing to protect customers from hundreds of millions of dollars in scams and scams each year, according to a U.S. Senate panel.
At a hearing held by the Permanent Subcommittee on Investigations, Democratic Senator and Chairman Richard Blumenthal said that customers of the banking giants are suing to recover $456 million in 2022 - all because of fraud and scams on the Zelle payment network.
“America's banks have a dirty little secret. The name is Zelle...
Zelle bills itself as “the fast and easy way to send and receive money.” But as the Committee discovered, there are often quick and easy ways to lose money on Zella.”
Senator Blumenthal says Zelle - a network owned by seven US banks including Chase, BofA and Wells Fargo - creates a curtain of security, leaving customers too vulnerable to fraud.
“Transfers in Zelle are almost instantaneous and irreversible, and by the time the consumer finds out they have been defrauded, it is usually too late to do anything about it - at least according to Zelle and according to the banks that own, control and actually manage Zelle...
Zelle and the banks that own it offer customers the semblance of trust they feel they deserve. But the risks here are real and present, and they simply cannot protect consumers the way they deserve.”
The Permanent Subcommittee on Investigations found that of the $456 million in customers lost to Zelle fraud in 2022, $341 million was recovered. According to the group, 13% of users of Zelle and other peer-to-peer payment platforms report sending someone money and later realizing it was a scam.
In response to the Senate panel's request, Zelle released a statement through its parent company Early Warning Services, LLC.
“Providing safe and reliable service to consumers is a top priority for Early Warning Services, LLC, Zelle's network operator, and our 2,100 participating banks and credit unions.
As a result of our ongoing efforts to build Zelle's strong security foundation, less than one-tenth of one percent (0.1%) of transactions are considered fraud or fraud, making Zelle one of the safest payment methods for consumers. they know and trust. Zelle is currently generally free for most consumers.”
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