The free payment app Zelle is hugely popular because it lets users transfer funds directly between bank accounts at no charge. But the popularity of Zelle -- a collaboration between Capital One, JP Morgan Chase and other top banks -- has also made it a major target for fraud.
Stories of Zelle users losing thousands of dollars in money-transfer scams continue to make headlines.
In an April 26 letter, Sens. Elizabeth Warren and Robert Menendez, both members of the Senate's banking committee, questioned Zelle's parent company, Early Warning Services, about "the extent to which Zelle allows fraud to flourish and the steps your company is taking to increase consumer protection and help users recover lost funds."