Federal Probe Targets Zelle's Fraud Prevention Efforts

Regulators question whether banks are adequately protecting customers from scams on the popular payment platform.

The Consumer Financial Protection Bureau (CFPB) is investigating major banks like JPMorgan and Wells Fargo over their handling of Zelle scams.
Zelle transactions are nearly instantaneous and irreversible, making them attractive to scammers.
Banks argue they already exceed legal requirements for consumer protection but face criticism for low reimbursement rates for scam victims.
Zelle's anti-fraud measures include user education campaigns and in-app warnings, yet scam reports persist.
Lawmakers propose new regulations to mandate banks reimburse consumers duped by scammers.