Zelle Alters Policy to Refund Victims of Imposter Scams Amid Growing Concerns
In a significant policy shift, banks utilizing the Zelle payment app, including major institutions such as JPMorgan Chase and Bank of America, have initiated the refunding of victims affected by imposter scams.
The move, effective since June 30, surpasses legal requirements, with Zelle's parent company, Early Warning Services (EWS), emphasizing its commitment to consumer protection. Previously criticized for not refunding customers tricked into approving transfers, Zelle's new approach follows an increase in imposter scams, with lawmakers investigating reported losses of $440 million in 2021. The Consumer Financial Protection Bureau (CFPB) has acknowledged Zelle's changes, while pressure persists for comprehensive regulations addressing imposter fraud protections.
Despite Zelle's assertion of low fraud rates, the platform's altered stance reflects a broader industry response to competitive pressures and evolving standards of care.
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