Zelle Begins Refunding Victims of Imposter Scams in Major Policy Shift

Change comes amid pressure from US lawmakers and consumer watchdogs, despite previous resistance from bankers

Zelle, a peer-to-peer payment network owned by seven banks, has begun refunding victims of imposter scams, marking a major policy change.
The new policy comes in response to consumer protection concerns raised by US lawmakers and the federal consumer watchdog.
Zelle's policy shift is a departure from last year when bankers argued it was unreasonable to require banks to refund transfers that customers were tricked into approving.
Zelle processed $629 billion worth of payments in 2022, with 99.9% of transfers made without a fraud or scam report.
Despite Zelle's changes, experts argue that regulations mandating imposter fraud protections would be better for customers.