JPMorgan Chase, Bank Of America, & Wells Fargo Face Lawsuit Over Zelle Fraud

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against JPMorgan Chase, Bank of America, Wells Fargo, and Zelle’s operator for failing to prevent fraud on the Zelle payment platform.

The complaint claims that these banks, which co-own Zelle, failed to implement safeguards, resulting in customer losses exceeding USD 870 million since Zelle’s launch. According to the CFPB, the banks rejected legally mandated payments and conducted insufficient investigations into fraud accusations. Zelle says the CFPB’s accusations are unfounded and refutes the claims. The agency highlighted that the three banks dominate activity on Zelle, with millions of fraud-related complaints reported. The suit was filed in the U.S. District Court for Arizona, with the CFPB accusing the defendants of violating consumer protection laws and enabling fraud through insufficient controls.