On December 20, 2024, the Consumer Financial Protection Bureau (CFPB) hit the operator of Zelle and three of its owner banks with a lawsuit claiming they let down customers and violated federal law by allowing fraud to run rampant on the popular payment platform.
According to the Zelle lawsuit, fintech company Early Warning Services (EWS), Bank of America, JPMorgan Chase and Wells Fargo are to blame for customers collectively losing over $870 million to fraud since Zelle was first launched in 2017. The case says the defendants did little to prevent criminals and fraudsters from exploiting the platform and essentially left victims to fend for themselves without any recourse.
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