JPMorgan Chase Bank of America and Wells Fargo Testify Following Alleged Refusal to Reimburse 115 Million to Customers on Zelle

Coin World News:
According to reports, JPMorgan Chase, Bank of America, and Wells Fargo have agreed to testify in front of the U.S. Senate regarding fraudulent activities worth billions of dollars on the payment network Zelle.
Politico cited sources familiar with the plan who were allowed to speak anonymously, stating that senior executives involved in the bank payment operations are expected to appear in court on July 23.
The hearing will be held by the Permanent Subcommittee on Investigations, which stated that the clients of the banking giants reported $456 million in Zelle fraud transactions in 2022, while the banks refused to reimburse $115 million in claims.
Democratic Senator and Chairman Richard Blumenthal stated that the banks failed to take necessary measures to protect consumers.
“They have decided that this is just a cost of doing business. But it’s a cost to consumers, not to them, because it’s consumers who are paying out of pocket. That’s why we invited Zelle and the three biggest banks to attend,” said Senator Blumenthal.
Senator Blumenthal stated that as scammers increasingly target customers using technological advances, the banks are now “taking notice.”
“Criminals are increasingly using scams specifically targeting individuals, using AI voice cloning and extracting personal information from data breached by hackers, selling it on the dark web, and the risks are increasing. Safeguards are becoming more important. Zelle and its bank owners have recognized the frightening new trend. There is no doubt. They have been notified,” he said.
They track the details of the latest scams but fail to stop them. They also fail to make their customers whole.
Zelle is owned by seven U.S. banks, including JPMorgan Chase, Bank of America, and Wells Fargo. The company stated that it processed $806 billion in transactions last year, with “less than one-tenth of a percent of transactions reported as fraudulent or scams.”
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